The economic court in Kyiv region after considering an application from private joint-stock company AeroSvit Airline, on December 29, 2012 commenced proceedings on the bankruptcy case.

According to the ruling published in the single ruling register, the court also ruled to introduce a property management procedure for the airline and appointed arbitration manager Leonid Talan property manager.

The ruling says that as of December 27, 2012, the airline had a debt of UAH 4.27 billion to its creditors. According to the balance sheet as of September 30, 2012, the total assets of AeroSvit stood at UAH 1.467 billion.

"Taking into account the above-mentioned facts, the debtor does not have a chance to pay the current debt to all of the creditors at once, and the satisfaction of claims of one or several creditors will result in the impossibility to fulfill financial liabilities of the debtor in full to other creditors, the debtor filed an application asking to declare it bankrupt," reads the ruling.

The property manager is to conduct a stock-taking of AeroSvit's property and inform the court on its results.

The case will be heard on January 23, 2013.

As reported, in December 2012, AeroSvit reported that the airline is preparing for the large-scale restructuring.