Volotea has activated the pre-insolvency mechanism in Spain in order to gain time in restructuring its debt, according to Hosteltur.
This is a preventive procedure prior to a potential collective proceeding. The goal is to reorganize the company before reaching the insolvency proceedings, which more closely resembles in France a collective procedure.
The company notified the Barcelona Commercial Court No. 9 of the opening of negotiations with its creditors. Its debt would amount to about €356 million, of which €200 million corresponds to a participating loan granted by SEPI in 2022.
The SEPI (Sociedad Estatal de Participaciones Industriales) is the Spanish public body that manages the state’s stakes in various companies.
This is a preventive procedure prior to a potential collective proceeding. The goal is to reorganize the company before reaching the insolvency proceedings, which more closely resembles in France a collective procedure.
The company notified the Barcelona Commercial Court No. 9 of the opening of negotiations with its creditors. Its debt would amount to about €356 million, of which €200 million corresponds to a participating loan granted by SEPI in 2022.
The SEPI (Sociedad Estatal de Participaciones Industriales) is the Spanish public body that manages the state’s stakes in various companies.
Volotea is notably working on rescheduling its maturities, exploring new financing solutions, and a capital increase. In parallel, the company plans to cut its fleet from 44 to 30-35 aircraft and adjust its staffing, with around 50 positions affected in certain roles at the Barcelona offices.
According to Hosteltur, Volotea attributes the deterioration of its situation mainly to rising fuel costs and energy price volatility, whose cumulative impact would amount to €150 million since March.
The company says it will maintain its operational activity and hopes to reach an agreement with its creditors by December.
According to Hosteltur, Volotea attributes the deterioration of its situation mainly to rising fuel costs and energy price volatility, whose cumulative impact would amount to €150 million since March.
The company says it will maintain its operational activity and hopes to reach an agreement with its creditors by December.
