Mexico City, Mexico - Mexicana airlines, which suspended flights four years ago due to its heavy debt load, was declared bankrupt last week, paving the way to dismantle the iconic company, once one of Mexico's top two carriers.

About 30 investors sought for more than three years to rescue the airline, which has an estimated debt of $1 billion, but none proved to have the necessary funds.

Last Friday the Communications and Work Ministriesreported that the courts had approved an agreement to proceed with the bankruptcy of Mexicana de Aviacion, and ordered the sale of "rights and assets" to pay back majority creditors: Mexican bank Banorte, development bank Bancomext, and Mexico City's International Airport.

The statement revealed no details of the agreement among creditors of Mexicana, which stopped flying 90 years after it was founded. When it suspended operations in August of 2010, the company had $786 million in assets and debts totalling $864 million.

Mexicana's MRO maintenance base, valued at between $80 million and $100 million, will continue operating. Resources it obtains will go toward a trust that benefits Mexicana's 8,000 workers and 600 retirees.

Mexicana's three major unions are considering a challenge to the declaration of bankruptcy, local media reported.