– Continuation of business is a realistic and logical option. I will propose that the assets of the two Pevec companies be transferred to the equity capital of the new company and that creditors of the claims or a larger part of them convert into an ownership share in the new company – says the bankruptcy administrator of Pevec, Darko Šket, for the business weekly Lider.
The plan for the continuation of Pevec’s business will be presented by Šket at the hearing on May 19 to the creditors of that trading company. With the continuation of Pevec’s business and entry into the ownership structure of the new company, creditors’ debts would be gradually settled from the profits of the retail chain. Although banks, which are the largest creditors (claiming approximately 850 million kuna), are not inclined to this option, they will likely agree to it because monetizing real estate would not fully cover their debts, thinks Šket. It is estimated that by selling the real estate and inventory of Pevec, Zagreb and Bjelovar would lack about 500 million kuna to cover the total debt. The decision on Pevec’s fate will be known after the hearing in May, and whether creditors will agree to Šket’s proposal will be influenced by the sales results of the recently reopened Pevec centers, which so far show satisfactory results.
