Aerolineas Argentinas is hammering out a deal to pay off up to 40% of its €720 million ($708 million) debt over the next two years. The bankrupt carrier's 600 or so creditors will receive 15% of what is owed to them in the first three months, 30% in the following year and 55% within two years. "The proposal is the best you can get in Argentina right now," says Fernando Dozo, president of Argentinian airline federation JURCA. "Other bankrupt companies here are offering 10-year deals," he adds. The deal must be approved by the bankruptcy judge and creditors. The carrier says it plans to raise up to $50 million in the capital markets in October. Aerolineas Argentinas, the country's largest carrier, was bought by Spanish tour operator Viajes Marsans in February, soon after entering administration.

Source: Flight International