Flanco dodges bankruptcy after eight months of uncertainty

The three banks that lent money to the Flanco network during the electrical retail boom, ING, Unicredit Ţiriac and BRD, yesterday approved the reorganisation plan of the insolvent company, which practically removes the risk of it going bankrupt. At the same time, banks hope to recoup almost 12 million euros from the retailer by finding an investor with cash resources to buy into the company.
"The reorganisation plan was voted, therefore bankruptcy is out of the question for the time being," explained Andreea Anghelof, senior partner of Casa de Insolvenţă Transilvania SPRL (Transilvania Insolvency Firm), the court-appointed administrator of Flanco International.
She added the lending banks were in talks with two investors interested in taking over the retailer's business, both of which were willing to come up with at least 14 million euros in cash to settle the company's debts and increase its working capital.