Eurolot on verge of bankruptcy?

The Ministry of State Treasury is considering a controlled bankruptcy as one of the solutions for debt-ridden airline Eurolot, according to sources quoted by Dziennik Gazeta Prawna. Decisions about the firm have to be made by the end of November. The State Treasury’s spokesperson Agnieszka Jabłońska-Twaróg and Eurolot spokesperson Karolina Bursa declined to state the value of the company’s debt. Nevertheless, labor union representatives have said that liabilities may be at PLN 100 million. Eurolot is expected to generate a loss of between PLN 10-20 million in 2014. In 2013 the loss was PLN 20 million and in 2012 it was PLN 57 million. Consultancy PwC was hired by the ministry to devise a restructuring plan. “The plan is meant to show whether there are possibilities for the company and what are they,” Jabłońska-Twaróg said.