Insolvent companies' lenders can lose over 50% of their sums

The assets of the 166 insolvent companies included in the portfolio of Casa de Insolvenţă Transilvania (Transylvania Insolvency Firm-CITR) do not cover even half of their debts, so that banks and suppliers are likely to lose almost 500m euros in the following years, either in the wake of these companies' reorganisation or liquidation.

CITR representatives, holding in the portfolio a series of the biggest domestic companies that went insolvent, calculated the companies they manage hold debts of 800m euros, while the value of their assets is put at 350m euros, but at present it is hard to believe that even this sum could be raised, if all assets were put up for sale.

As the firm has lately centred more on reorganisations than bankruptcies, in the following period the focus will be on the distribution of significant sums to lenders, but the sums will only cover a small part of receivables.

Small unsecured lenders have voiced rising discontent lately as in the wake of reorganisation they may end up not recouping any money.