Troubled SkyEurope Inks Two Deals Providing Cash

SkyEurope, the financially troubled Slovakian low-cost airline, has inked an investment deal with Austrian equity firm FOCUS Equity B.V. The deal provides an investment by FOCUS of up to EUR 16.5 million, conditional on several factors including SkyEurope’s successful restructuring plan.

Despite the agreement with FOCUS, the airline is still in need of cash to complete its restructuring which began in June, so a short term loan of EUR 5 million has been secured from British company Chain Box Technologies. The bridging agreement will provide cash to meet working capital demands during reorganization. SkyEurope hopes the two deals will help persuade other investors that its airline has good potential and is a safe and profitable investment.