Category Archives: East Star Air

East Star Air is declared bankrupt

 

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East Star Air (Wuhan) has lost its effort to restructure its debt and resume operations. The Wuhan Intermediate People’s Court rejected the restructuring plan backed by ChinaEquity on August 27, 2009. The court declared the ChinaEquity funding proposal was too vague and unspecified. China’s fourth private airline suspended operations previously on  March 15, 2009.

 

News link:

www.chinadaily.com.cn/china/2009-08/27/content_8625656.htm

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East Star Air asks to resume operations

 

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East Star Air (Wuhan) has asked the CAAC for permission to resume operations and claims it is solvent per ATW. The company suspended all operations on March 15, 2009.

 

Full details from ATW:

East Star Air asked CAAC for permission to resume operations despite a Wuhan court’s rejection of takeover offers from China National Aviation Fuel Holding Co. and Shanghai YuField. East Star was forced to suspend operations and enter bankruptcy owing to its heavy debt burden and the March collapse of a share sale deal with Air China parent CNAC (ATWOnline, July 17).

East Star spokesperson Zhao Changbing disputed reports that the carrier owed CNY1.01 billion ($147.6 million). “In fact, our debt was about CNY752 million before we were suspended but we have total capital of CNY1.01 billion, so we still have a net asset of CNY257 million, which proves we don’t have a financial problem at all. So we hope the regulator [will] approve us to resume operation,” he said. He reiterated the airline’s interest in welcoming any investors interested in a takeover even though five CNAF subsidiaries, seven airports and Shanghai YuField have made no progress.