Cyprus Airways to be sold off

Victoria
By Victoria July 22, 2014 10:37

Cyprus Airways to be sold off

The government of Cyprus has formally offered Cyprus Airways for sale in a final attempt to save the airline from bankruptcy.

Last week, the Cypriot government invited Expressions of Interest (EOI) from “strategic and/or financial investors” for acquiring either “shares or a significant bundle of assets” of the airline.

The Cypriot government is the major shareholder in the carrier, holding a 93.67% stake, with the remainder in the hands of private investors. The government stressed the EOI did not constitute “an offer or invitation to subscribe for or purchase” any shares and related only to “the submission of a non-binding intention to investigate the possibility of submitting a binding offer.”

The deadline for formal Expressions of Interest is July 23rd.

The European Commission is currently investigating whether Cyprus Airways must repay more than €100 million of state aid aimed at helping the airline restructure.  The carrier has also been selling off assets to bolster its balance sheet.

Cyprus Airways also sold its last two remaining slots at London Heathrow $31 million, and the airline has reportedly sold and leased back five of its fleet of six aircraft to release funds.

Victoria
By Victoria July 22, 2014 10:37
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