A Czech regional court has declared aircraft manufacturer Let Kunovice bankrupt on the basis of a petition filed by unpaid employees, state-owned bank Konsolidacni Banka (KoB) and Pan Pacific Airways.
KoB, which is owed 2 billion Czech crowns ($50 million) by Let, announced it was to file a bankruptcy petition in August.
Pan Pacific, meanwhile, claimed that Let had failed to supply it with L-410 commuter aircraft, though Let owner Ayres counters that the US airline did not have sufficient financial resources.
Ayres, which acquired Let in 1998, had planned to place a large part of its Loadmaster production work with the Czech firm, but stopped financing its subsidiary in July after KoB cancelled a standstill agreement on debt payments. Loadmaster work may now transfer to Poland or Romania.
At the same time, Israel Aircraft Industries says it needs to determine market demand for the Loadmaster before it decides whether to accept Ayres' offer of a strategic partnership in the programme. FedEx has 75 firm orders and275 options.
BAE Systems, as a consultant, is helping to find a solution to Let's problems, offering the firm offset work as part of its campaign to sell Gripen fighters to the Czechs.
Source: Flight International
