AeroSvit, Ukraine's largest airline, will seek protection from its creditors in court this week after grounding most of its flights, Reuters reported.
AeroSvit, which operates 28 planes and serviced 2.8m passengers in 2011, had debt of UAH4.27bn as of the end of last year, which was almost three times its assets.
The Kiev-based company said the court procedure was part of a reorganisation plan aimed "to restore its operating efficiency and increase revenue inflows". The hearings are due to start on January 23.
"We expect a (court) ruling that will launch the process of recovery in the company," an AeroSvit spokesman said cited by Reuters.
The company filed for bankruptcy late last December. As a result, more than a thousand passengers in cities from Bangkok to Stockholm were unable to get on return flights to Ukraine in time, forcing the Ukrainian government to intervene and arrange their return.