The administrator of collapsed national carrier, Swissair, says the company's shares should no longer be traded at the Zurich stock exchange.This content was published on December 7, 2001 - 17:56
Karl Wüthrich said on Friday they should have been taken off the market a long time ago. "There is no point in continuing to trade valueless shares," he said.
Following Wüthrich's comments, Swissair shares lost some eight percent of their value in Zurich, and were trading at SFr3.50 ($2) on Friday. The shares reached their lowest value, SFr1.25, on October 3 amid the airline's collapse.
Wüthrich said the outlook for shareholders was bad since any compensation would come from liquidation proceedings - due to begin in September 2002 at the earliest. He also warned that shareholders should be prepared to see their investment wiped out.
Bondholders may recoup something
Bondholders, on the other hand, may recoup 12 percent of their investment, he said, adding that the total value of Swissair bonds is around SFr2.8 billion.
Swissair, already suffering from a failed expansion strategy that led to losses of about SFr2.9 billion in 2000, was hit by the airline industry slump that followed the September 11 attacks. Crossair, the regional subsidiary of Swissair, took over part of its former parent's operations on October 28.
Last week a Zurich judge granted Swissair protection from creditors and gave Wüthrich until May 29 to deliver a report on the Swissair collapse. Any delay will invalidate the company's protection, the judge ruled.
swissinfo with agencies
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