TORONTO – The embattled Canadian-owned SkyGreece Airlines has filed for bankruptcy protection, according to a document from a Toronto law firm representing the company.
In a letter to the Canadian Transportation Authority on Thursday, the law firm Paliare Roland Rosenberg Rothstein LLP indicated SkyGreece had filed a notice of intention to seek bankruptcy protection and begin restructuring proceedings.
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Ernst & Young Inc., as the trustee for SkyGreece, will be communicating with creditors and customers of SkyGreece and will establish contact points through which creditors can provide and obtain information, according to the document.
The airline had until 5:00 p.m. Thursday to respond to a ruling from CTA that it had failed to meet its contractual obligations to passengers.
READ MORE: SkyGreece ceases operations after grounding flights, stranding passengers
SkyGreece abruptly cancelled all of its flights last week, citing technical issues and financial setbacks from the Greek economic crisis. The airline had originally called the move a temporary situation and said its operations were expected to resume soon.
The move left roughly 1,000 passengers stranded and prompted passenger rights advocate Gabor Lukacs to file a complaint with Canadian Transportation Agency and order the airline to rebook its passengers with another airline and put up $8.7 million to cover passenger claims.
Sky Greece Airlines operated two planes and was based out of Athens, with an office location in Toronto.