Regional court declared a moratorium on the assets of the Ostrava company Vítkovické slévárny

by   CIJ News iDesk III
2023-11-03   09:47

The Regional Court in Ostrava declared a moratorium on the assets of the Ostrava-based company Vítkovické slévárny on Thursday. This follows from the resolution published in the Insolvency Register. The motion for the moratorium before the insolvency proceedings were initiated was filed this week by the company itself, which is one of the largest foundries in the Czech Republic. The moratorium is effective from the moment of publication in the Insolvency Register and lasts until 13 November.

The company said in the petition that it has fallen into a difficult economic situation that fulfils the characteristics of bankruptcy. In order to resolve its situation, it has prepared a reorganisation plan in cooperation with specialised advisers. The company said that it had claims on its creditors for more than CZK 700 million. At the end of last year, the company had almost 300 employees.

The company said that as soon as it has the support of more than half of all secured and unsecured creditors, it intends to submit the reorganisation plan to the insolvency court together with an insolvency petition, which will be combined with a petition for reorganisation. It expects to file the insolvency petition during the moratorium.

The purpose of the moratorium is thus mainly to protect the debtor's assets during the voting on the reorganisation plan. The debtor has given its creditors until 13 November 2023 to vote on the reorganisation plan, the company announced.

In the prepared reorganisation plan, the company said it is undergoing an operational restructuring, closing down the operations of its loss-making foundry division (DSO). "It intends to complete the DSO orders from the DSO inventory and work-in-progress and sell off the remaining assets located in the DSO," the firm said. It will use the money from the sale of these assets to satisfy creditors' claims. The second part of the company, the cylinder foundry division, will remain in operation and the company wants to find an investor to join the company.

Vítkovice Foundry is a traditional producer of rolls for rolling metals, shaped castings from steel and cast iron and castings from copper alloys. It is one of the most important foundry companies in Central and Eastern Europe in the production of rolls.

Source: Vítkovické slévárny and CTK
Photo: Vítkovické slévárny