SmartLynx Airlines Files for Insolvency Proceedings 0 6

According to him, a court decision on the initiation of insolvency is expected, after which the company will cooperate with the insolvency administrator in accordance with the law.

He explained that "SmartLynx" planned to implement a restructuring plan by December 15 of this year, offering creditors a stake in the company and making payments over a specified period of time. However, "false and misleading information from various stakeholders" led to the loss of aircraft and client contracts.

"Therefore, the company will not undergo a legal protection process and has filed for insolvency," Demenyus added.

He acknowledged that the total liabilities of "SmartLynx Airlines" to more than 700 creditors amount to approximately 238 million euros, of which 170 million euros, or about two-thirds, are owed to the previous owner, "Avia Solutions Group." He clarified that this is money that the previous owner invested in the company as a loan in recent years.

He added that the tax debt registered with the State Revenue Service of more than 522,000 euros is mainly related to social taxes. "When the company began to experience difficulties, we requested deferrals of various payments, so the amount accumulated, but there are no debts to employees. At the moment we started the legal protection process, this amount appeared as an accumulated liability, but we agreed to extend the payment term," he explained.

Demenyus added that in the future, in the insolvency process, creditors' claims will be satisfied in the order established by law - employees, the state, and then other creditors in order of priority. He acknowledged that the enterprise still has assets, so money will be returned to the state budget.

When asked what portion of creditors' claims the company might cover, he said he did not want to speculate, but the administrator would have to assess this from various aspects, taking into account market, book, and nominal value.

At the same time, he acknowledged that the company has lost aircraft and clients and, therefore, will not be able to recover. "The company had a clear plan and investments, but the lessees decided to terminate all contracts based on public information that was false," said Demenyus.

As reported, the Latvian airline "SmartLynx Airlines" ceased operations on November 24. "SmartLynx Airlines Estonia" and "SmartLynx Airlines Malta" also ceased commercial activities.

In October 2025, there was a change of ownership at "SmartLynx Airlines" - the company was acquired by the management of the company and a specialized investment fund from the Netherlands. Currently, 90% of the capital of "SmartLynx Airlines" belongs to the Dutch "Stichting Break Point Distressed Assets Management," with 5% owned by Lithuanian citizens Mindaugas Kazakevičius and Edvinas Demenyus, who are members of the company's board.

Previously, the sole owner of the company was LLC "Smart Aviation Holding," owned by "Avia Solutions Group," whose ultimate beneficiary is Gediminas Žemėlis.

The company previously stated that with the change in ownership, "SmartLynx Airlines" would operate as an independent entity, while "SmartLynx Airlines Malta" and "SmartLynx Airlines Estonia" would remain under the ownership of the previous shareholder. However, the company has now clarified that both enterprises have changed owners and are owned by the same owners as "Smartlynx Airlines Latvija."

In 2024, "SmartLynx Airlines" transported 10.66 million passengers, which is 62.5% more than in 2023. The airline operated 68,085 flights, which is 43.4% more than the previous year, while the volume of cargo transported decreased by 6.8% to 31,872 tons. At the end of 2024, the airline's fleet consisted of 68 aircraft.

According to data from "Firmas.lv," in 2023, the turnover of "SmartLynx Airlines" amounted to 339.027 million euros, with a profit of 11.089 million euros. The consolidated turnover of the "SmartLynx Airlines" group was 496.651 million euros, with a profit of 22.774 million euros. Financial results for 2024 have not yet been published.

"SmartLynx Airlines" was registered in 1992, with a share capital of 1 million euros.