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China's East Star Airlines reveals $110m debts

(Xinhua)
Updated: 2009-07-20 15:30

Related readings:  East Star Airlines may have found a white knight  Debt-laden East Star Airline to get $73M fund  China grounds debt-laden East Star Airlines  Private airline suspends operation because of financial problems

East Star Airlines Co Ltd said Saturday in Beijing that its current combined debt surpassed 752 million yuan ($110.1 million).

Zhao Changbing, spokesperson of the company, said the announcement was made to counter rumors about the status quo of the company's assets and debt.

Zhao said total assets of the company stood at 1.01 billion yuan.

Established in 2005 in central Hubei province, East Star Airlines operated more than 20 routes. Its operation was suspended by the industry regulator as of March 15 this year, due to financial difficulties of the carrier.