Court declares avianova airline bankrupt

A Moscow Arbitration Tribunal declared Avianova airline bankrupt and launched six-month bankruptcy proceedings to settle creditors’ claims, RAPSI news agency reported on Monday. A representative of the indebted airline earlier told the court that Avianova had total debts of 586 million rubles ($20 million), assets of 701,000 rubles on its accounts, equipment worth 3.35 million rubles and receivables of 16.1 million rubles. Avianova flights were suspended in October 10 and Russia's aviation watchdog annulled its flight operating certificate in January 2012. Avianova’s problems arose from a conflict between two major shareholders, Alfa Group's Russian investment company A1 and U.S. Indigo Partners investment fund.