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China's private airline faces bankruptcy amid huge losses

(Xinhua)
Updated: 2009-03-27 16:20

Six creditors have sent applications for the bankruptcy of East Star, one of China's private airlines, to the Intermediate People's Court in Wuhan, capital of Hubei province.

Authoritative sources said Friday East Star will most likely go bankrupt as it faces huge losses and cannot handle the current difficulties itself.

East Star has had losses of about 500 million yuan ($73 million), according to auditors. It suspended operation on March 15.