CZECH REPUBLIC: Svit Creditors Approve RA Contract
The creditor committee of footwear producer Svit Zlin, which was declared bankrupt on September 13, has approved a mandate contract between Svit and the Revitalisation Agency (RA), Svit's receiver Roman Rais said today. The contract will determine how Svit's assets will be sold."The cooperation with RA should produce a material summing up the options for selling Svit's assets and subsidiaries while preserving production and employment, securing conditions for the development of Svit's industrial premises, generating the maximum possible yield for creditors and preparing a transparent state of its subsidiaries for the future owner," a Roman Rais representative told Czech newspaper Ceska Tiskova Kancelar.Rais has informed the committee about the performance of Svit's subsidiaries, which have stopped deepening their losses and now post moderate profits.The creditor committee also approved the sale through a public tender of real estate and land which is not related directly to production and which Svit does not use. The committee approved also the sale of tangible fixed assets worth less than Kc100,000 through a continual public auction.The bankruptcy petitions against Svit were filed by the Prague Stock Exchange (BCPP) on August 17 and by Phoboss CZ Zlin on August 22. Svit had more than Kc130m (£3.2m) worth of overdue debts to BCPP and more than Kc230,000 ($5,740) to the latter. Svit's ex-management appealed against the petitions.Total debts of the former largest footwear producer in Central Europe are estimated at Kc5bn ($124m).
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