The Romanian state – owned aviation company Romavia will become insolvent in the third quarter of this year, as it has due debts of some EUR 10 million., according to Mediafax.

The Government paid the company’s previous debts, shrunk its activity but also signed off on unjustified expenses.

The company, which provides air transport services for passengers and freight, as well as special flights for high level officials, had its air operation certificate suspended as the company lacked money to lease planes.

This led Romavia to lose its exclusivity in organizing special flights. The company had overdue payments of some EUR 8.4 million end – 2013.

Under Romania’s new Insolvency Code, state – owned companies can also become insolvent, not only private companies.

editor@romania-insider.com