Alitalia to Start Bankruptcy Process as Workers Spurn Bailout
- Job and pay reductions were tied to $2.2 billion refinancing
- Carrier’s chairman begins procedure to name a administrator
Alitalia to Start Bankruptcy Process
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Alitalia SpA said it exhausted all options after workers voted against job cuts aimed at salvaging the cash-strapped Italian airline, pushing it toward administration for the second time in a decade.
A 2 billion-euro ($2.2 billion) recapitalization tied to the savings plan is effectively dead and Alitalia will start appropriate “legal procedures” as funds run out, the Rome-based airline said. Chairman Luca Cordero Di Montezemolo “formally” communicated to the Italy aviation authority that the carrier decided to start the process of naming a administrator, the authority said on its website late Tuesday.