Canadian-owned SkyGreece Airlines is preparing to file for bankruptcy protection, according to a Toronto law firm.
The firm that represents the embattled airline, Paliare Roland Rosenberg Rothstein LLP, sent a letter to the Canadian Transportation Authority, filing a notice of intention to seek bankruptcy protection and begin restructuring proceedings.
The airline had until 5 p.m. Thursday to respond to a ruling from CTA saying it failed to meet contractual obligations to passengers.
The airline’s trustee, Ernst & Young Inc, will be communicating with creditors and customers for creditors to provide and obtain information.
Around 1,000 passengers were stranded last week when SkyGreece abruptly cancelled all of it’s flights, citing financial setbacks from the Greek economic crisis and technical issues as the issue.
The cancellation also prompted passenger rights advocate Gabor Lukacs to file a complaint with the CTA, asking them to order the airline to re-book passengers with another airline and put up $8.7 million to cover passenger claims.
SkyGreece was founded in 2012, and started operations in 2014. The company was based out of Athens, with an office in Toronto.