Ljubljana/Brnik, 30 September (STA) - Flag carrier Adria Airways successfully completed on Friday a capital injection after all trade unions but one signed a new collective agreement, the final precondition for a EUR 50m capital increase by the state and conversion of bank loans to equity.
"This completes the financial restructuring of the company and sets the groundwork for operational and staff restructuring," the Adria management board said in a statement.
The text of the restructuring agreement was finalised on Tuesday by Adria Airways, creditor banks, the state Capital Assets Management Agency and the state-run PDP corporation, the majority owner of the airline.
The three conditions for the capital injection set in this agreement were agreements with airport operator Aerodrom Ljubljana and fuel supplier Petrol, and a collective bargaining agreement with the trade unions.
A EUR 49.5m bailout from the state, joined by another half a million from PDP, had been made conditional by the government on a conversion of at least 25% of the total of EUR 76.8m bank claims into shares.
The conversion of EUR 19.7m-worth of debt was last confirmed by the shareholders of Adria Airways last week.
All unions bar the Cabin Crew Union signed the new collective agreement, leading executive director Robert Vuga to express "disappointment".
But he was glad the company could now focus on operational and staff restructuring, which includes finding a strategic partner for the airline.
Adria plans to publish an international call for expression of interest by the end of March 2012.
"If we stick to the restructuring programme...there is no fear for Adria's long-term survival. But it is important...to find a strategic partner from the industry," he said.