Skymark said to owe lessors GE Capital, AWAS total US$520m

[TOKYO] Skymark Airlines Inc filed for bankruptcy owing lessors about US$520 million, led by the aircraft-leasing arm of General Electric Co, according to a document the airline submitted in the Tokyo District Court.

Skymark owed GE Capital Aviation Services Ltd, or GECAS, US$125 million, followed by AWAS Aviation Trading Ltd US$116 million, according to the document obtained by Bloomberg News. Aviation Capital Group Corp and Babcock & Brown Aircraft Management LLC each had US$63 million to get from the Tokyo-based airline, which filed for bankruptcy Jan 28.

Hiriyouki Sakata, a Skymark spokesman, declined to comment.

The budget airline had to seek protection after a decision to purchase six Airbus Group NV A380 superjumbos flopped last year. Japan's third-largest carrier filed with 71 billion yen (US$602 million) in liabilities and President Shinichi Nishikubo stepping down in favor of Chief Financial Officer Masakazu Arimori. The stock will be delisted on March 1.

Reuters reported the debt on Tuesday.

BLOOMBERG