VLM has suspended operations after filing for bankruptcy with an Antwerp commercial court on Wednesday, June 22.
To justify the move, the carrier said in a statement that the court allotted six-months period of creditor protection would not be enough to both restructure its operations and raise extra capital. Additionally, the VLM CEO, Hamish Davidson, said the two-week waiting period between the application for creditor protection and its acceptance had also seen some passengers cancelling their bookings for their scheduled operations. Charter and ACMI contracts were also severely affected.
The carrier reportedly owes EUR3 million (US$3.4 million) to KBC Banks as well as an additional EUR3 million to various suppliers, including Antwerp Airport.