CZECH REPUBLIC: Kozeluzny Otrokovice Up For Auction
Bankrupt leather processing plant Kozeluzny Otrokovice will be auctioned on December 18, with the minimum price set at Kc65m ($1.6m), bankruptcy administrator Rene Husek told Ceska Tiskova Kancelar today. The company went bankrupt in November last year.The sale was approved by a majority of the creditors committee, among them the state-owned Konsolidacni banka, Komercni banka, Tax Office in Otrokovice, Toma Otrokovice, and Danish firm Rasmussen & Partners. Husek sees the auction as the most transparent form of sale of the entire company.Kozeluzny's largest creditor is state-owned Konsolidacni banka, with claims worth Kc500m ($12.5m). Along with Toma Otrokovice and Prumyslova COV Otrokovice it has filed a bankruptcy petition against the firm. Total claims amount to nearly Kc1.5bn ($37m).In 1996, Kozeluzny, then the largest leather processing company in Europe, had 800 staff. In Q1 of 1998 it had 190 staff and sales of Kc76m ($1.9m), posting a Kc27m ($673,434) loss. In October of this year, ten months after the declaration of bankruptcy, it posted a loss of Kc30m ($748,260).
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