Slovenia

Ljubljana airport should be able to replace most flights lost in the collapse of Slovenia’s Adria Airways within a year and a half, its manager and owner Fraport said on Tuesday, Reuters reported. Fraport is in talks with airlines to replace Adria flights, which accounted for 11 of 29 regular routes serving Ljubljana, Zmago Skobir, business director of Fraport Slovenia, told a news conference. “There is demand for these destinations and we have received the first signals that they will be replaced,” Skobir said.

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Slovenian airline Adria Airways has filed for bankruptcy and canceled all flights, it said in a statement on Monday, after financial problems forced it to ground most of its planes over the last week, Reuters reported. “Bankruptcy proceedings were initiated by the management of the company because of the company’s insolvency,” Adria, which is owned by German investment firm 4K Invest, said. Adria is the latest in a long line of small European airlines to run into financial trouble amid industry overcapacity, cut-throat competition and high fuel prices.

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Slovenia’s Adria Airways has cancelled almost all of its flights for Tuesday and Wednesday, potentially affecting around 3,700 passengers, because it has been unable to access cash to continue flying, it said on Tuesday, Reuters reported. “The company is at this point intensively searching for solutions in cooperation with a potential investor. The goal of everyone involved is to make Adria Airways fly again,” it said in a statement.

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The European Commission is suing Slovenia for seizing European Central Bank documents in a raid at its own central bank three years ago as investigators looked into its role in bank bailouts, Bloomberg News reported. The Commission said Thursday in a statement that it’s “decided to refer Slovenia to the Court of Justice of the EU for the violation of the inviolability of the archives of the ECB.” Attempts in 2016, 2017 and 2018 to clarify the facts and circumstances were unsuccessful, it said.

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Slovenian publishing and tourism group DZS said Ljubljana District Court has ordered the preventive restructuring of its financial liabilities, See News reported. The process will have no impact on the regular activities of the company and will allow DZS and its creditors to employ appropriate debt restructuring measures, the group said in a filing to the Ljubljana Stock Exchange on Thursday.
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The European Union’s highest court ruled that Slovenia broke no laws when it imposed so-called “burden-sharing” in the 2013 banking rescue that wiped out about 600 million euros ($664 million) of bondholder debt, Bloomberg News reported today. The ruling may lend support to the euro member’s central bank, led by Governor Bostjan Jazbec, after it was raided by Slovenian police earlier this month on suspicion of wrongdoing during the bank rescue.
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Automotive industry supplier Cimos, one of the biggest companies in Slovenia, will undergo court-supervised debt restructuring after the major creditors decided against a debt-to-equity conversion by the Thursday deadline, the Slovenian news agency STA reported.
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The receiver of the Slovenian subsidiary of Austria's troubled construction company Alpine Bau has admitted EUR 2.2m in claims and rejected EUR 28m, including EUR 13.5m worth of claims by Slovenian motorway company DARS stemming from the yet unfinished construction of a tunnel between the coastal towns of Koper and Izola, the Slovenian Press Agency (STA) reported. Read more. (Subscription required.)
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Slovenia Struggles To Avoid EU Bailout

Primož Kozmus is a Slovenian national hero lionised for tossing a hammer to double Olympic gold. Soon he might be forced to honour his Alpine homeland another way: sacrificing his personal fortune to help avert a eurozone bailout, the Financial Times reported. Slovenia’s banks are in such a dire state that Mr Kozmus is almost certain to face a so-called haircut, which will slice through the more than €100,000 of junior bank bonds he bought during Slovenia’s heady credit boom. “The money was safe and then they changed the rules,” said Mr Kozmus.
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Slovenia's banks are weak and trust in the system is limited, Finance Minister Uros Cufer told parliament on Friday, as expectations grew that the country may need financial help from abroad, Reuters reported. Slovenia's banks are crippled by at least 7.5 billion euros ($10 billion) of bad loans - more than a fifth of national output - with stress tests set to reveal in November how much help the sector will need.
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