MOSCOW: Bankruptcy is the only solution for Russia’s second largest airline Transaero after state-controlled Aeroflot backed out of purchasing the debt-laden carrier, Economy Minister Alexei Ulyukayev said on Friday. “The search for other options has not led to positive results.

We are proceeding on the basis that this is the only possible option,” Ulyukayev said, quoted by Russian news agencies.

Aeroflot’s board of directors in early September approved the acquisition of a controlling 75 per cent plus one share stake in Transaero for the symbolic sum of one rouble in a government-backed deal.

But Aeroflot did not manage to agree with Transaero’s creditors on restructuring its debts totalling an estimated 250 billion roubles ($3.78 billion) including leasing obligations and did not manage to acquire the 75 per cent stake within the agreed deadline.

Aeroflot said in a statement late Thursday that it was not going to extend its offer to buy Transaero.