End of the road: Cobalt enters into liquidation

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End of the road: Cobalt enters into liquidation
Added: 11-01-2019 02:24

Any optimism that Cobalt Air might be resurrected has finally ended with the announcement that the company has recently entered into liquidation.

At the start of October 2018 rumours began circulating that the budget airline was facing financial problems after two of its aircraft were grounded for two days, causing delays to flights. The company had posted losses for the year 2017 and liquidity issues combined with a difficulty by Chinese stockholders to export capital due to Chinese government restrictions were blamed at the time.

Cobalt tried and failed to reach a deal with a potential new European investor and on October 17, 2018 it announced the immediate termination of its flight schedule.

Subsequently Cyprus Transport Minister Vasiliki Anastasiadou pledged state support for those that had been stranded either in Cyprus or overseas by the collapse of the airline.

Since then, the Cyprus News Agency (CNA) reported that Greece-based company Diversa was considering acquiring Cobalt Air. Consultants authorised by the Diversa board of directors had been looking into the possibility of acquiring the company Cobalt New Age Airlines Group Limited, owners of 100 per cent of Cobaltair Ltd shares.

Despite efforts to find new investors no firm offer was received and in December 2018 Cobalt entered into voluntary liquidation.

Cobalt was launched in 2015 with flights commencing in July the following year - it went on to become the island's biggest airline.

Employing many pilots from the defunct national carrier, Cyprus Airways, Cobalt was operating 13-15 flights carrying up to 3,000 passengers daily to 23 destinations. Its fleet consisted of two Airbus 319s (144 seats) and four Airbus 320s (156 seats).

Stephen Michaelides of Grant Thornton Specialist Services Limited has been appointed as Liquidator.

Announcements in connection with the liquidation process, including various assets which will be disposed of, will be posted on the Cobalt website.

For any other information, please contact them by phone 22600000, by email at cobalt@cy.gt.com or by post at 41-49 Agiou Nicolaou Street, Nimeli Court, Block C, Egkomi 2408, P.O. Box 23907, 1687, Nicosia, Cyprus.

Author: NewsinCyprus.com
Added: 11-01-2019

End of the road: Cobalt enters into liquidation

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