Russian court upholds amicable deal of UTair, BFA Bank

MOSCOW, Dec 1 (PRIME) -- The Thirteenth Arbitration Court of Appeals has approved an amicable agreement between Russian airline UTair and BFA Bank on a 603 million ruble debt suit, a representative for the court told PRIME Tuesday.

The bank demanded redemption of debt under a credit line agreement signed in 2013. In February, the Arbitration Court of St. Petersburg and the Leningrad Region satisfied the bank’s claim, but the Thirteenth Arbitration Court of Appeals voided the lower court’s decision and suspended proceedings on the case due to the amicable deal between the airline and the bank.

On November 23, The Arbitration Court of the Khanty–Mansi Autonomous District cancelled proceedings on a bankruptcy case against UTair as the last claimant, Tatfondbank, had withdrawn from it.

UTair’s total debt amounted to 167 billion rubles as of mid-December 2014. The airline is now holding restructuring talks with all its creditors. A representative of the airline said November 10 that the restructuring deal may be reached with Rosbank and other creditors until December 25.

(66.7370 rubles – U.S. $1)

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