Creditors of Air Belgium (KF, Brussels Charleroi) have been asked to vote on the airline's reorganisation plan on September 4 or submit their proxy voting forms by August 30 as part of the current court-led reorganisation procedure (procédure de réorganisation judiciaire - PRJ) to restructure its debts and avoid insolvency.

Belgian news site Aviation24 reports that the airline's reorganisation plan, finalised on August 14, 2024, outlines measures to stabilise its finances. It prioritises passengers by ensuring they receive full refunds while placing a heavier burden on other creditors to facilitate the restructuring. Crafted with the help of independent reorganisation practitioner Bernard Vanham, the plan cannot be modified at this stage; creditors must decide to accept or reject it. The vote results will be announced following the September 4 court hearing.

The reorganisation plan categorises creditors into various classes, each with specific repayment terms. Key aspects of the plan include:

  • Passenger refunds: Passengers classified as "Class H" creditors will receive full refunds by April 2025;
  • Other creditors: Pay-outs to other creditor classes will be subject to varying reductions. Banks will see a 40% reduction in their claims, while lenders and shareholders face up to 95% reductions.

If approved, the judicial procedure will be concluded on September 19, and Air Belgium will begin repaying claims from that date. Rejection of the plan could lead to severe financial repercussions for the company and its creditors.

Air Belgium declined to comment when approached by ch-aviation, saying the information was confidential and only intended for creditors concerned. "The company attaches great importance to the confidentiality and protection of its partners‘ and customers’ information and respects the confidentiality of these individual exchanges," a spokesperson said.

The court-assisted restructuring process has been ongoing for a year after Air Belgium filed for the PRJ on September 18, 2023. Under Belgian law, a PRJ can be extended for 12 months. In May 2024, the judge overseeing the procedure approved a four-month extension to the process.

On July 9, 2024, the Business Court of Walloon Brabant granted a request to modify the procedure's object, now reclassified as a "collective agreement" instead of an "amicable settlement." According to the airline, this reclassification is crucial for successfully completing the PRJ under the best possible conditions.

Since filing for restructuring in September 2023, Air Belgium has suspended its scheduled passenger flights. It has redirected its aircraft and resources towards profitable operations, notably ACMIs for passengers and freight transport.

In September 2023, it was reported that Sichuan Airlines Group, a Chinese state-owned company and parent of Sichuan Airlines (3U, Chengdu Shuangliu), was keen to invest in Air Belgium, contingent on a more appealing financial position.