3-May-2012 4:22 PM

Cimber Sterling declares bankruptcy

Cimber Sterling Group stated (03-May-2012) the owners of Cimber Sterling have decided "not to support the company financially any longer". As a result, the board of directors has decided to declare the company bankrupt and a declaration of bankruptcy was handed to the Court of Sønderborg on 03-May-2012. Cimber Sterling CEO Jans Palmer said the board of directors and management team "worked intensely to ensure a turn around of the company for several months but unfortunately we did not succeed before we ran out of time. It was simply not possible to change the direction of the company as fast as needed and thereby in due time deliver the necessary financial results". He continued, ”The management team will work closely together with curator to ensure as much value as possible in the company and to continue as much of the operation as possible under a reconstruction of the company. It is our proposal to curator that we for a start and as a minimum continues to fly four aircraft on the regional routes that the company are operating for SAS. At the same time we will suggest that we together with curator explores the possibilities to operate more aircrafts and thereby ensure as much value as possible for a possible buyer”. [more - original PR]

Cimber Sterling: ”It is a day of sorrow for Danish aviation, for Cimber Sterling and for me personally. But it is not at least sad for all the passengers that at this moment have worthless tickets and lost expectations. And it is highly sad for a lot of employees that risk losing their job. It is the expectation that a plan can be drafted within the next three days concerning the future of the company activities. Unfortunately in situations like these there will be a lot of loose ends that have to meet. Therefore we will work intensely on all options the coming days," Jans Palmer, CEO. Source: Company statement, 02-May-2012.

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More