The crash seems to be consumed: the airline company has asked to benefit from a bankruptcy in order to "identify very quickly other solutions of restructuring."
Everybody seemed to fear it yesterday but it happened today: Air Liberté-AOM declared bankruptcy. The airline company declared bankruptcy on this day to the commercial court of Créteil" a press release announced. "The president of the company (Marc Rochet) asked to benefit from the opening of a bankruptcy in order to identify very quickly other solutions of restructuring for this group", it was added. Despite numerous contacts and meetings held on the day of June 14th and again in the morning of June 15th, it wasn't possible to end up at a solution ensuring the durability of the AOM-Air Liberté Group in its current organization."
In the morning, two news were received: the withdrawal of a potential American rescuer and the interest showed by EasyJet, the British low cost strongly established in Nice, for some assets of AOM (however, these assets were not clarified). The Department of Transport didn't wait to react at the announcement of this bankruptcy. Jean-Claude Gayssot, the minister, mentioned in the afternoon his disapproval concerning the solution chosen by AOM/Air Liberté "whereas it is even possible that solutions to continue the Parisian pole exist", it was written in a release from the Department.
Moreover, it is estimated that "despite the efforts developed within the conciliation procedure, the shareholders of AOM and Air Liberté refused to set up the financing which allowed to end up at the realization of serious and credible offers." The release added that the commercial court of Créteil will go on the negotiations in order to bring out all solutions to allow to maintain the jobs and activities".
According to the management of Air Liberté/AOM, the company would have sufficient funds at their disposal on the short term to ensure the continuation of its operating, in particular during the big departures at the end of June and at the beginning of July. However, it is difficult to forecast now a favourable issue in a buy out. This buy out requires a recapitalization worth 3 billion francs and until now, if Swissair seemed to be ready to invest two billion francs in the operation, Marine Wendel, the other shareholder, refused to invest more. The proposal of Swissair, depending on the participation of Marine Wendel, the situation is then totally blocked.