Swissair paid its first instalment of SFr 69.96 million (Euro10.66 million) to the French airline, AOM/Air Liberté, in line with the terms of a rescue package obliging the Swiss group to pay a total of SFr345 million towards the restructuring of the struggling carrier.This content was published on August 18, 2001 - 00:33
AOM/Air Liberté filed for bankruptcy in June after its shareholders, Swissair and Marine Wendel, said they would not give it any more money to stay afloat.
Its fate was decided by a commercial tribunal in Paris on August 1, which plumped for the rescue package drawn up by Holco, a group led by former Air France pilot Jean-Claude Corbet.
In exchange for the payment, AOM/Air Liberté is forbidden to press any legal charges against the Swiss airline.
The Swissair Group, which retains a 49.5 per cent stake in the French carrier, will stagger its payment of the total sum to the French airline in seven instalments between now and December 31.
In addition, it will also have to cover part of the SFr46 million in claims arising from flight cancellations. It is also obliged to loan four Airbus aircraft to the struggling carrier for the next 10 years at a reduced rate, which will cost the group a further Sfr122 million.
swissinfo with agencies
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