Spectator on facebook

Spectator on facebook

BUSINESS IN SHORT

Construction giant in trouble

AFTER Doprastav, another large construction company, Váhostav-SK, is facing problems with late payments to its subcontractors. The district court in Bratislava launched on September 23 a bankruptcy proceeding against Váhostav-SK over unpaid debts, the TASR newswire reported.

AFTER Doprastav, another large construction company, Váhostav-SK, is facing problems with late payments to its subcontractors. The district court in Bratislava launched on September 23 a bankruptcy proceeding against Váhostav-SK over unpaid debts, the TASR newswire reported.

“[The bankruptcy proceeding against Váhostav-SK] unfortunately confirms that the era of so-called cheap highways has caught us,” Transport Minister Ján Počiatek said on September 24 after the cabinet session. “Companies in the past won some orders for prices not even covering costs and got into such difficult situations.”

According to Počiatek, the problems of Váhostav-SK were known and they often asked the company management how they wanted to resolve this situation, which in the end especially burdens their subcontractors.

“But the management has claimed that it would handle the situation and that it is prepared, also by pouring additional funds into the company, to stabilise the situation,” said Počiatek.

According to Tomáš Halán, a Váhostav-SK spokesman, the company has recently noticed several proposals to launch a bankruptcy proceeding submitted by the creditors of the company due to the unfavourable situation in the Slovak construction sector. The company’s management also continues to settle disputes transparently and is in negotiations with its creditors.

“Simultaneously, it is looking for ways to end the launched bankruptcy proceeding and continue its activities,” Halán said, as quoted by TASR.

The company Energy Pro has taken Váhostav-SK to court for unpaid invoices of less than €50,000, which the construction firm has owed for about two years.

Váhostav-SK, which employs about 1,300 people, is one of the major Slovak construction companies participating in highway construction. It is currently working on six stretches of highway, some of which are delayed.

The company closed last year at more than €13 million in the red, its worst economic result in more than 10 years, the Hospodárske Noviny wrote.

Top stories

End of investigative show a cause for concern

Media freedom watchdogs believe the scrapping of the only investigative show on public-service television is a threat to its independence.

Jaroslav Rezník

Slovakia is 26th on the Employment Flexibility Index

Higher work surcharges will push Slovakia down.

Proxy for Roma criticises minister Kaliňák for ethnical and group discrimination

The government proxy slammed Interior Minister Robert Kaliňák for the draft law on repressing criminality in Roma settlements, for populist discrimination and preferring repression to prevention.

Roma communities, illustrative stock photo

Slovak racer Svitko finished at Dakar Video

After a serious fall in the tenth leg, Slovak motorcyclist Štefan Svitko resigned from the 40th year of the Dakar Rally due to pain in his upper body.

Štefan Svitko