Alitalia risks having to file for bankruptcy if no deal on a proposed capital increase is reached in a couple of weeks, a government source said on Tuesday.
Alitalia’s shareholders will vote on a capital increase of at least EUR€100 million (USD$136 million) on October 14 to help keep the company afloat.
“Alitalia risks filing for bankruptcy if no solution on the capital increase is found in a couple of weeks,” the government source told Reuters news agency.
Alitalia needs around EUR€500 million to keep going and to be able to invest in a new turnaround strategy, analysts have said, after accumulating losses of over EUR€1 billion since being privatized in 2009.
Air France-KLM owns a 25 percent stake in the carrier.