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Opportunity for Collection for 1000 Varteks Creditors

The Settlement Council of Fina has today made a decision to initiate the pre-bankruptcy settlement procedure for the textile company Varteks d.d. from Varaždin.

After the Management of Varteks submitted a request for the initiation of the pre-bankruptcy settlement on November 20 of last year and supplemented all necessary documentation within the stipulated time, the Settlement Council assessed that all necessary conditions were met and granted the request.

According to the decision published today, all creditors, except for creditors with priority claims, are invited to submit their claims within 30 days, with the first hearing scheduled for March 19 at the Congress Hall of the Zagreb Fair.

The Council also made a decision, confirming the appointment of Antun Mišanović as the commissioner for the pre-bankruptcy settlement. According to him, around 1000 creditors are expected at the hearing on March 19. Based on the information I have, I am very optimistic about reaching an agreement with the creditors and I believe that most of them will accept the terms of the settlement, Mišanović told Hina.

He explained that the creditors are divided into three groups – the state, whose claims are among the largest, financial institutions and banks, and other creditors. For the settlement to succeed, 50 percent plus one creditor must decide in favor of the settlement in each group.

There is also a model in which all creditors’ claims are considered collectively, and for the settlement to be accepted, the consent of creditors whose claims represent two-thirds of the total claims is required, Mišanović noted, emphasizing that negotiations with the largest creditors, the state and financial institutions, are going in a very good direction. According to data published on Fina’s official website, Varteks’s obligations amount to 635.6 million kuna.

Varteks also reported today on the pre-bankruptcy settlement procedure via the Zagreb Stock Exchange, relaying a statement from Varteks’s CEO Zoran Košćec that they expect a positive outcome of the pre-bankruptcy settlement process as soon as possible. At this moment, securing urgent liquidity for the company is crucial, which is a prerequisite for initiating all further processes, Košćec said.