The restructuring process of the insolvent airline CSA could take a long time, because Smartwings, as the owner, submitted an application to the court that should lead to an extension of the restructuring plan until the beginning of February 2022.

The bankruptcy court announced this accordingly in the Czech bankruptcy register. Originally, Smartwings applied in June 2021 that the restructuring plan should be drawn up within four months. The court then gave its approval. It now depends on the judge's decision whether or not Smartwings' latest application will be granted.

The reason for the parent company's application can also be seen in the file: Smartwings needs more time to negotiate with the aircraft manufacturer Airbus. It concerns machines of the types Airbus A321neo and A220, which were ordered but not accepted. CSA is deep in the chalk at Airbus in this regard: The manufacturer has filed for bankruptcy proceedings totaling 17 billion Czech crowns. Since the negotiations on an agreement are in a good status, the court is asked to extend the deadline to February 4, 2021.Smartwings expects that a deal can be concluded in October 2021 and as this will have a major impact on the other CSA companies. Creditors, it will take more time to draw up the recovery plan.

It is also interesting that Smartwings writes in the application that they would negotiate intensively with a new investor about joining CSA. However, the identity of the potential financier is not given. The entry and the possible investment amount would depend on the outcome of the negotiations with Airbus. In total, claims amounting to around 19,4 billion Czech crowns were filed in the insolvency proceedings. With around 17 billion Czech crowns, the lion's share is accounted for by Airbus.