The recognized receivables of Balkan Airlines are 165 million leva as approved by the creditors' committee on Friday, said the receiver's lawyer Todor Nenov. The final list of creditors was also announced, Nenov added.

The lawyer informed the creditors of the value of tangible assets, set by KPMG at 128 million leva. "The valuation of intangible assets (services, slots, and others) is forthcoming, but their value is at an estimated $8.5 million," Balkan Airlines spokesman Viktor Melamed said.

The creditors' committee also discussed on Friday the possible leasing of airplanes. It approved what is considered to be a very attractive offer submitted in writing by Lufthansa for two Boeing 737s, Melamed said. The other subject of discussion was the charter flight program and possible lending in advance by the tour operators.

Last week, the Sofia City Court approved a list of Balkan Airlines creditors' claims and the owner, Gad Zeevi, was not on the list. Zeevi claimed 48.6 million leva from the national carrier. Following the decision, Zeevi lost his full voting status with regards to the company's future.

The institutions which are now considered the principal creditors of the company are the State Claimings Agency (representing the Bulgarian state), the Air Traffic Services Authority, and the Sofia Airport. The money owed to the three creditors represents nearly 60 per cent of the total amount of the approved claims.

The court decision is final and cannot be appealed. "The Commercial Code provides a possibility to appeal later against the entire procedure, which would involve many complexities," Nenov explained. A rehabilitation plan can be quickly and easily adopted, and this would help prevent the company's bankruptcy, he added.

In 1999, the Israeli Zeevi Holding bought the majority stake in Balkan Airlines. A bankruptcy procedure was launched early in 2001, due to the poor financial position of the airline. Trustees in bankruptcy were appointed and the court ordered attachment of its property.