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COURT DENIES SABENA BANKRUPTCY PROTECTION

COURT DENIES SABENA BANKRUPTCY PROTECTION

   Attempts to start a successor to Sabena Airlines, Belgium’s failed national airline, failed when a commercial court refused to extend bankruptcy protection to Sabena’s former in-house bank.

   Investors had hoped a Belgian court would offer protection for Sabena Interservice Center, the former in-house bank of Sabena, under a plan to erase debts owed to it by a former Sabena subsidiary, Delta Air Transport.

   Investors wanted the bank’s creditors to waive about half of the $96 million owed by DAT to Sabena, and the remainder would have been swapped for a stake in the airline. DAT then would have been developed as a successor to Sabena, which collapsed last month.