Alitalia files for US bankruptcy

Eleanor Steed
By Eleanor Steed June 14, 2017 17:21

Alitalia files for US bankruptcy

Alitalia has filed for Chapter 15 protection – for international insolvencies –  in the US to stave off the threat of losing access to New York’s John F. Kennedy International Airport due to unpaid bills. One of JFK’s terminal operators threatened to suspend the airline’s lease as soon as Tuesday unless it was paid, reports The Wall Street Journal. Internet and telephone service providers were also poised to cut off the airline over unpaid bills.

Chapter 15 acts in a similar manner to Chapter 11 bankruptcy protection, freezing all lawsuits and blocking creditors from seizing assets.

The Italian airline is currently being propped up in Italy by emerging governing financing of €600 million.
Judge Sean Lane will oversee the airline’s U.S. bankruptcy proceedings.

Eleanor Steed
By Eleanor Steed June 14, 2017 17:21