Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Cyprus's budget airliner Cobalt Aero announced on 17 October 2018 during the night, the immediate suspension of the company's operations with its 250-280 employees pushed to unemployment. Cobalt Aero posted losses in 2017 and was faced with cash-flow problems in the last months. The company proceeded to the announcement in the aftermath of the failure of its negotiations with an investor.
According to unconfirmed media reports, the company has already settled all pending employees' salaries including three weeks' notice payments, as well as all its debt to various labour related funds. Although the country's most representative trade unions have not been active in the company, they expressed their sadness for the company's closure, their solidarity with the company's employees, as well as their expectation that the employees' rights will be fully respected.
Cobalt Aero commenced its operations just 2 years and three months ago. The company boasted itself as a genuine Cypriot airliner aiming to cover the gab of the Cyprus Airways closure. Cobalt has reportedly employed persons who have been working previously with the Cyprus Airways. Cobalt's main shareholder is AJ Cyprus, holding 49% of the company's shares. AJ Cyprus is a subsidiary of the Chinese Avic Joy Air.
Eurofound (2018), Cobalt Aero Ltd., Bankruptcy in Cyprus, factsheet number 95655, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/95655.