Alitalia files for chapter 15 bankruptcy in the US

Alitalia has filed for Chapter 15 bankruptcy protection in the US to be able to keep its terminal lease at JFK International airport in New York.

The italian airline, which is currently surviving thanks to a loan of €600 million from the Italian government, has been granted a restraining order until June 23rd, offering it a short period of protection from creditors’ claims.

Chapter 15 allows foreign companies protection under the United States Bankruptcy Code as they undergo insolvency proceedings in their own country.

The temporary relief will allow Alitalia to continue its operations to the US, which the airline says is “critical to its overall operations”. In a filing, Alitalia said that, without protection, it may be forced to suspend flights to JFK because it could lose its terminal lease.

The airline also said that JFK operations account for 15% of its revenues. The filing also said that the airline faced the imminent termination of its telephony and internet services, forcing it to suspend customer service in the US.

A hearing is scheduled for June 26th.

Want to know more about Alitalia’s history? Check out our exclusive report here!