THE CREDITORS’ committee approved the final proposal of the restructuring plan submitted by construction firm Doprastav. Meanwhile, company Bankruptcy & Recovery Service, which is the restructuring administrator, announced the meeting of creditors that will take place on December 11. The main topic will be the vote over adopting the plan, the SITA newswire reported.
Since there is very high number of the debt claims, the creditors will be able to register gradually, based on the first letter in their name. They will be allowed to vote over the plan either personally or via their representative. The participants will be able to read the restructuring plan directly at the office of the administrator, Bankruptcy & Recovery Service announced, as reported by SITA.
Doprastav had to change its restructuring plan, which it first submitted on October 3, by the end of November. The reason was the comments from two of five members of the creditors’ committee: Eximbanka and VÚB bank. Because of the financial problems the company started restructuring in April. The creditors of the firm claimed the debts of €458.8 million, of which the administrator recognised €189.3 million, SITA wrote.
The financial problems of the firm started in 2010 after termination of the concession contract on construction of the cross-country D1 sections through a public-private partnership (PPP). The company list the invested money and had to pay the severance pay to thousands of dismissed employees. It also started having problems in Poland where the investor of the highway construction refused to pay Doprastav €50 million for extra construction works. The company also did not get money for orders worth €40 million from companies that had gone bankrupt, as reported by SITA.
Doprastav and its partners in various consortiums are currently constructing four highway sections in Slovakia. This includes D1 stretch Fričovce-Svinia for €114.6 million, D1 stretch Hričovské Podhradie-Lietavská Lúčka for €427.2 million, D3 stretch Svrčinovec-Skalité for €329.9 million and express double-carriageway R2 stretch Pstruša-Kriváň for €178 million.
Compiled by Radka Minarechová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
20. Nov 2014 at 10:00