VLM (1992) (Antwerp) has suspended operations following a formal filing for bankruptcy with an Antwerp commercial court on Wednesday, June 22.
Justifying the move, the carrier said in a statement that the court allotted six-month period of creditor protection would prove insufficient for it to both restructure its operations and to raise extra capital going forward. Additionally, VLM CEO Hamish Davidson said the two-week waiting period between the application for creditor protection and its acceptance had also seen a number of passengers cancelling their bookings for VLM's scheduled operations. Charter and ACMI contracts were also severely affected he said.
The carrier reportedly owes EUR3 million (USD3.4 million) to KBC bank as well as an additional EUR3 million owed to various suppliers which include Antwerp Airport.
VLM operated eleven Fokker 50s (of which two are leased to each of CityJet (WX, Dublin International) and flybe. (2002) (Exeter)) on passenger charter flights as well as scheduled passenger flights between Belgium, Switzerland, Germany, the United Kingdom, the Netherlands, Italy, and Norway.
