Slovenian banks have endorsed the financial restructuring plan of the state owned Adria Airways, which will receive a short term bridging loan to the tune of between 3 and 4 million Euros, Radio Slovenija reported this week. The money will be used to pay foreign suppliers and help Adria through the slow winter season, according to the airline’s chairman Maks Tajnikar. “If Adria hadn’t been granted this short term loan, it would have lacked short term operating support, which in turn would have increased our debt to suppliers”, Tanjikar said. Adria owes suppliers, most of which are foreign companies, approximately 30 million Euros.Adria’s restructuring plan will be tough on employees which have already received a 20% pay cut. Furthermore, the plan entails selling some of the airline’s assets and restructuring previous bank loans. Banks, whose support Adria so desperately needs, have given their support to the restructuring plan, however they are demanding for Adria to be privatised by the end of the year.
Tajnikar has said that negotiations with potential foreign investors were under way, adding that Adria was counting on tighter ties with Star Alliance partner Lufthansa. Adria's debt stands at 130 million Euros, of which 80 million are outstanding bank loans, according to the daily “Dnevnik”. By the end of March this year it will be decided whether Adria’s operating certificate will be extended. In the unlikely event that it is revoked, the carrier would in effect close its doors on its 50th anniversary.
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