Insolvency company Euro Insol to manage the insolvency of oldest industrial unit in Romania

2012-06-01 10:03:06

Insolvency company Euro Insol, that recently announced it would manage the insolvency case of Romexpo,  has been assigned by Bucharest Court law to manage the insolvency of UCM Resita, which states debts worth EUR 190 million and it was declared insolvent since December 2011. According to a statement of Euro Insol, the preliminary list of creditors comprise 185 names, which claim total debts worth EUR 190 million, of which only ANAF has to recover EUR 111 million. UCM Resita stated business worth EUR 29 million in 2011, a slight increase over 2010. In the last two years, the company reported losses worth approximate EUR 87 million.  Also, the company has some 2,200 employees. According to Eur Insol, it will be a challenge to implement a recovering plan for such a company which has a large number of employees, and a turnover six times smaller than the debts, while the losses are three times larger than the revenues. The insolvency company plans to redress the company in the first stage by redirecting the growth of revenues through new commercial contracts especially on the external markets, reduction of costs, both direct and indirect. They estimate that the company’s staff is over-dimensioned compared with the volume and value of production.
Industrial complex Resita has been founded in 1771 by Austrian fiscal company, being the oldest industrial unit in Romania and one of the first established in Europe. In 2003, Resita plant got privatized, being acquired by Austrian company INET and UCM employees.