As already pointed out, possible in many European countries.

Malev was indeed put under bankruptcy protection

Malev under bankruptcy protection


“Unfortunately, the event occurred which we had a greatest fear of and we wanted to avoid ... our partners lost their trust due to the information published in the last days and they started to ask for payment of their services in advance. This speeded up the cash outflow and the situation of the airline became untenable,” the carrier said.

CEO Loránt Limburger said the owner was “unable to provide additional financial resources to operate after the EU decision” earlier this year calling on the carrier to repay the equivalent of up to $350 million in illegal state aid between 2007 and 2010

the decision to ground the airline came after two aircraft were not allowed to take off from Tel Aviv and Dublin because of its debts.

http://atwonline.com/airline-finance...perations-0203