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5-Dec-2024 10:52 AM

Nordic Aviation Group files for bankruptcy

Nordic Aviation Group filed (04-Dec-2024) a petition with the court on 29-Nov-2024 to declare Nordica and Xfly bankrupt. Temporary receivers were appointed for Nordica and the court imposed a restriction on all transactions with Nordica's assets, as of 04-Dec-2024. The court will also appoint a temporary bankruptcy administrator for Xfly in the future. The majority of aircraft leased by Nordic Aviation Group were returned to the destination specified by the leasing companies. Nordic Aviation Group also returned aircraft owned by Transporti Varahaldus OÜ to Tallinn Lennart Meri Airport. The company's debts amount to EUR38 million, after deducting the value of assets. [more - original PR]

Background ✨

Nordic Aviation Group decided to file for bankruptcy for Nordica and Xfly after investor Lars Thuesen withdrew from privatisation talks, prompting the company to notify employees and partners, including aircraft lessors, about the bankruptcy intentions1. The company had previously aimed to improve financial performance and stabilise operations in 2024, but faced challenges that hindered these objectives2. Additionally, significant financial pressures were evident, with liabilities reported at EUR58.4 million as of 30-Jun-20243.

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