Alitalia seeks administration under rescue plan

0 Comments | AFP, August, 2008

MILAN (AFP) — Alitalia said Friday that it has asked to be declared bankrupt and placed under special administration, the first step in a rescue plan that will see the struggling Italian flag carrier relaunched.

The airline said in a statement it had submitted a declaration of bankruptcy to a Rome court for approval.

Prime Minister Silvio Berlusconi's government named former finance minister Augusto Fantozzi as the special administrator for Alitalia following the announcement.

On Thursday, the government adopted a new bankruptcy bill which laid the groundwork for Alitalia's rescue by allowing failing companies to speed up certain procedures such as selling shares and laying off workers.

The bill also relaxed certain anti-trust rules so as to allow...