Former Blue Air CEO blames Romania's Govt., besides Covid-19, for its financial problems
The Romanian Government refused, in July-August 2021, a debt-equity swap proposal made by Blue Air for its EUR 54 mln debt - and this barred the company's access to financing on the foreign markets, former Blue Air CEO Oana Petrescu explained.
At that time, the global aviation industry was hit by another wave of restrictions amid the Covid-19 pandemic, and the company was doing its best to settle its financial situation.
The Government's refusal complicated the company's financial situation to the point that it suspended operations for a month on September 6 this year, Petrescu, formerly a banker, implied.
The company's development would have been entirely different if the Government had accepted the swap, she argued, sketching ambitious plans including AIM listing on London Stock Exchange and operational expansion. And the debt-equity swap would have been an excellent option for the Romanian state, too, she argued, according to Hotnews.ro.
Blue Air also gave the Romanian state the option to become a majority shareholder - by providing more financing from public sources besides the EUR 60 mln already extended in 2020, she explained.
Former Blue Air CEO Petrescu provided the details on the negotiations with the Romanian Government in the context of a public debate related to the inexplicable EUR 60 mln Eximbank loan guaranteed by the company with collaterals amounting to 10% of the loan, further serviced from public funds.
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