The Slovenian government said Adria Airways' financial situation was worse than expected
The Slovenian government said Adria Airways' financial situation was worse than expected AFP / Jure Makovec

Slovenia's flag carrier Adria Airways announced Monday that it had filed for bankruptcy.

"Adria Airways on Monday filed at the Kranj court a request to start a bankruptcy procedure," it said in a statement, explaining that the move was due to "the lack of liquidity" and that the court had three days to consider the application.

Slovenia's Civil Aviation Agency said that it had revoked Adria's licence and that all of the company's airplanes were grounded.

Last week, the agency had given Adria a week to present a financial restructuring plan or face losing its licence.

Earlier on Monday, the Slovenian government ruled out a rescue bid for the airline, saying Adria's financial situation was worse than anticipated and bankruptcy was the sole option.

Slovenia sold the financially stricken carrier to German investment fund 4K in 2016 after ploughing more than 50 million euros ($55 million) into it.

But under its new owner, the airline -- which employs about 500 people and operates regional flights between the Western Balkans and other parts of Europe -- continued to lose money.