PODGORICA (Montenegro), May 25 (SeeNews) – Montenegro's tax authority said it has rejected the tax debt restructuring proposal of flag carrier Montenegro Airlines as the company receives state aid.
In this way, Montenegro Airlines tops the blacklist of tax debtors to the country's treasury, with liabilities worth 15.4 million euro ($17.3 million), the tax authority said in a statement on Wednesday.
In a separate statement issued on Wednesday, Montenegro Airlines said it is cooperating with the country's finance and transport ministries on the elaboration of a long-term strategy for the development of the company.
Montenegro Airlines denied media reports that it could be declared insolvent as a result of the failed debt restructuring deal, and explained that its operations are steady and all flights are running according to schedule.
Montenegrin media reported on Thursday that Montenegro Airlines will most probably be declared insolvent, as the tax administration has repeatedly warned that companies which fail to reach a debt restructuring deal would face bankruptcy.
Montenegro Airlines saw its net loss widen to 11.5 million euro in 2016 from 10.4 million euro in the previous year, as revenue went down 3.4% to 65.4 million euro.
($ = 0.8905 euro)