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Court declares glass maker Sklo Bohemia bankrupt

Post Time:Dec 02,2008Classify:Company NewsView:465

The municipal court in Prague on Friday declared bankruptcy proceedings on glass maker Sklo Bohemia on the application of creditors.

Creditors agreed on Friday that bankruptcy is the only possible solution for the debt-ridden company, the company's receiver Helena Horova told CTK.

Sklo Bohemia had over 1,200 employees who got the last wage for August. There has been no production since end-September.

The total volume of claims will fall significantly after reviewing to be completed by December 18.

"There is some duplicity," she said.

Costs linked with due wages, including severance payments, have topped Kc200m.

Creditors decided on Friday that the company's assets would not be sold as a whole but in parts. Horova said no investor interested in buying the whole glassworks or renewing glass production has appeared.

Sklarny Sklo Bohemia is part of debt-ridden glass group Bohemia Crystalex Trading (BCT).

The company has been in insolvency since October 14. Its assets, according to the insolvency proposal, are worth Kc1.374bn.

The company's creditors will meet again on December 18. At this meeting, they can appoint their own receiver.

"During that period of time, I will make no major moves because it is not up to me but up to the creditors to decide whether or not I will continue," Horova noted.

Sklo Bohemia used to rank among leading lead crystal producers. Some 500 people have left the company since the day production was stopped at end-September.

A further 700 have been served notices as part of mass lay-offs. Only some two dozen people have stayed. They take care of the company's property but are receiving no wages.

The labour office of Havlickuv Brod now has some 350 former glass workers in its files. They will be paid their first unemployment benefit in early December.

Source: The Czech News Agency (CTK)Author: shangyi

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