Air Lituanica (Vilnius) creditors rejected a bid to open non-judicial bankruptcy proceedings at a meeting held on Thursday, June 25. Having suspended operations in May, the carrier then initiated bankruptcy proceedings this month after a review of its finances showed it had neither the capital nor the assets to cover all its liabilities.
As such, the company required 75% of creditor approval to move ahead with its out-of-court bankruptcy plan though this was thwarted by Vilniaus Šilumos Tinklai (Vilnius Heating Grids), a municipal company that used its 27.78% share of the creditors votes to deny the measure.
A court-officiated proceeding will now take place and will involve a forensic audit of the carrier's operations and books since its establishment in 2012.
