TŽV Gredelj Exits Bankruptcy

The Railway Vehicle Factory (TŽV) Gredelj is exiting bankruptcy as its strategic partner – the Slovak company Tatravagonka, has made a payment, thereby starting the deadline in which Gredelj must pay each individual creditor, Gredelj announced on Tuesday.

Gredelj reminds that at the hearing held on July 15 of this year, creditors accepted the bankruptcy plan, with creditors of the first higher payment order voting 100 percent in favor, and creditors of the second higher payment order voting 98.75 percent in favor.

This indicates that the creditors expressed their satisfaction with the developed bankruptcy plan and the proposed methods of settlement.

– For all creditors of the 1st higher payment order, the assignment of the total established claims in favor of the strategic partner is provided, along with a payment of a fee for the assignment by the strategic partner amounting to 49 percent of their amount, which payment will be made in a lump sum in cash within 30 days from the fulfillment of conditions to the account of the bankruptcy debtor, and the bankruptcy debtor will pay the corresponding cash amount to the account of each individual bankruptcy creditor no later than 15 days from the received payment – it is stated.

For creditors of the 2nd higher payment order, the assignment of the total established claims in favor of the strategic partner is provided, along with a payment of a fee for the assignment by the strategic partner amounting to 20.36 percent of their amount, which payment will be made in a lump sum in cash within 30 days from the fulfillment of conditions to the account of the bankruptcy debtor, and the bankruptcy debtor will pay the corresponding cash amount to the account of each individual bankruptcy creditor no later than 15 days from the received payment.

Gredelj states that the conditions that must be met for the strategic partner to make the payment are the finality of the Commercial Court’s decision on the confirmation of the bankruptcy plan accepted by the creditors, and the statement of the bankruptcy trustee that all obligations of the bankruptcy estate have been settled and that there are no other unsettled obligations outside regular business except those provided for in the plan.

– As all the aforementioned conditions have been met, the strategic partner has made the payment, and the deadline has begun in which the bankruptcy debtor must make payments to the account of each individual creditor – emphasized TŽV Gredelj.

The bankruptcy over Gredelj was opened on October 1, 2012, and a total of claims of the 1st higher payment order amounting to 281.3 million kuna and 2nd higher payment order amounting to 619.4 million kuna were reported, totaling 900.7 million kuna.

Claims were reported by 2,004 creditors, and based on the amount of reported claims and the number of creditors, ‘this bankruptcy is considered one of the largest bankruptcies conducted in the Republic of Croatia,’ TŽV Gredelj emphasizes.

They also remind that Tatravagonka, in its investment offer for TŽV Gredelj in bankruptcy (September 2020), stated an investment amount of 45 million euros and that, in accordance with the decision of the creditors’ assembly from December 12, 2012, and the offer of the Slovak company, the drafting of the bankruptcy plan was initiated according to the provisions of the Bankruptcy Act, all for the sustainability of continued operations through the mentioned bankruptcy plan.

Gredelj also emphasizes that throughout the bankruptcy proceedings, production has been maintained, thereby preserving jobs. The company currently employs 400 workers and meets all obligations on time.

– It is particularly important that workers have confidence that the continuation of production is possible and that exiting bankruptcy while maintaining production and jobs is feasible – it is stated in the announcement, which also conveys the statement of the bankruptcy trustee Tomislav Đuričin, who emphasized that it has been shown that long-term operations during the bankruptcy proceedings and exiting bankruptcy through the bankruptcy plan and further continuation of operations, while preserving jobs, is possible.