SkyEurope Airlines Gets Creditor Protection

Slovak-based SkyEurope Airlines said Monday it had obtained creditor protection from a Bratislava District Court to restructure its debt, as it seeks new equity investors.

The budget airline, listed in Vienna, said in a statement it would continue the full operation of scheduled and charter flights, and preserve jobs.

"There has been ongoing investor interest in SkyEurope and its business plan, although the company's debt has been a barrier," SkyEurope said.

"This period of reorganization under creditor protection will give the company time to restructure its debt and become attractive for new equity investment."

The airline has suffered for months from declining passengers numbers as the slowing global economy weighs on the sector, and four out of its 14 planes were already grounded.

The company posted a net loss of EUR18.94 million euro in its fiscal year ending September 30, 2008, compared with a EUR15.68 million loss in the previous fiscal year.