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Kalousek does not rule out financial help to glass group BCT

Post Time:Jan 14,2009Classify:Company NewsView:723

Czech Finance Minister Miroslav Kalousek said in a statement on Tuesday he does not rule out financial help to glass group Bohemia Crystalex Trading (BCT) which is in bankruptcy.

Until recently, Kalousek rejected any financial help to the companies from the BCT group. The minister responded to demands of BCT unions and managers who try to maintain employment in the glass makers.

BCT group has welcomed the minister's initiative.

Crystalex Novy Bor and Sklarny Kavalier glass works will submit, in the shortest time possible, a realistic proposal regarding at least a partial resumption of production at Crystalex and maintaining of production at Kavalier. In addition, they will also put forward proposals regarding steps to be employed when searching for investors, BCT group spokesman Karel Samec has told CTK.

However, during the three-month moratorium on BCT, Crystalex and Sklarny Kavalier, it was not possible to carry out restructuring and consequently a sale owing to a lack of financial sources, Samec said.

"Creditors preferred a quick sale without any additional investment," Samec said.

Moreover, according to the law, the firm, which is in insolvency proceedings, can be sold only after it filed for insolvency and was then declared bankrupt, which can be expected within weeks, according to Samec.

"Appointed insolvency administrators will subsequently conduct the sale," Samec added.

The potential help to support the financing of the companies' operations has to be based on clear data that the losses will not be getting higher and that the money will return, he said.

"Help is possible only under the condition that the current owners immediately submit a realistic plan of restructuring and sale of the company's viable segments," Kalousek told CTK.

He added he had information about many serious investors interested in buying the individual companies but at the moment could do nothing else but tell them to turn to the owners and creditor banks.

Kalousek also recalled that for four months the owners have been unable to agree on an effective restructuring plan and stressed that the state did not co-own the companies.

The management of glass maker Crystalex Novy Bor asked for the financing of production a week ago when due to lack of money it had to suspend production. Emptying of glass furnaces ended on Thursday.

Crystalex also announced to the employment offices it would lay off 1,631 employees. Crystalex is one of BCT's key companies.

The BCT group had some 5,000 still in September and in 2007 fulfilled orders for Kc5.5bn. Due to the lack of operating capital, it has been in insolvency proceedings since September 22.

Source: CTKAuthor: shangyi

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