A ruling of the economic court of appeals in Kyiv on the termination of a case on the bankruptcy of Kyiv-based AeroSvit Airline is illegal, the company's property manager and arbitration manager Leonid Talan has said.

"I think that [the court ruling] is illegal, taking into account the fact that first the Boryspil united state tax inspectorate as of February 5, 2013 is not a party or a side in the case from the point of view of the law on the restoration of the solvency of a debtor or declaring it bankrupt, and it does not have the right to submit claims, and secondly, the ruling on the opening of the bankruptcy case cannot be appealed against," he told Interfax-Ukraine.

Talan said that the termination of the bankruptcy case could result in unexpected results due to the cancelation of a moratorium on the satisfaction of the claims of creditors. Forced collection of funds by some creditors could be seen, not taking into account the interests of all the creditors.

"I don't know the further actions of AeroSvit Airline, although from the point of view of general court practice in the issues of appealing rulings on the opening of bankruptcy cases, I will submit an appeal against the ruling of the economic court of appeals in Kyiv," he said.

He said that if the appeal were upheld, the proceedings in the bankruptcy case would continue in part of the property management procedure.

Commenting on the conducting of a stocktaking of the airline's property, for which the economic court in Kyiv region gave the period until February 15, 2013, Talan said that it has been finished, although due to the issue a ruling by the economic court of appeals in Kyiv on the termination of the proceedings in the bankruptcy case, the results of the stocktaking will not be submitted to the court.

As reported, the economic court of appeals in Kyiv on February 5, 2013 cancelled a decision of the economic court of Kyiv region to institute proceedings on the bankruptcy of AeroSvit.

"Thus, the appeal of the Boryspil united state tax inspectorate on preventing the unjustified liquidation of the taxpayer was partially satisfied," reads a press release from the Income and Tax Ministry.

The ministry experts assure they are operating exclusively within the law and all measures are aimed, first of all, at protecting the economic interests of the country.

As reported, with reference to the Income and Tax Ministry, the State Tax Service of Ukraine figured out the possible creditor claims of the state within the bankruptcy of AeroSvit.

The ministry at that time pointed out that the planned comprehensive inspection of the company has not been completed due to the commencement of bankruptcy proceedings.

The economic court of Kyiv region on December 29 introduced a procedure for managing the property of AeroSvit, which foresees doing business without restrictions. At the same time, in accordance with the law on restoring the debtor's solvency or declaring it bankrupt, the court imposed a moratorium on the satisfaction of creditors' claims.

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.

The airline later said that the submission of the claim was made as a part of its restructuring to launch a readjustment procedure, to restore the airline's solvency, and to ensure the fulfillment of its liabilities to creditors.

AeroSvit was created in 1994. It is based at Boryspil airport in Kyiv. It previously served 80 international destinations in 34 countries, and provided services to the largest cities of Ukraine. Its fleet consisted of 28 Boeing aircraft, including 20 medium-range Boeing 737s and eight long-haul Boeing 767s. In addition to that, it operated Airbus 320, Airbus 321, Embraer 145, Embraer 190, and ATR-72 aircraft.