Flanco banks and suppliers agree to cancel 40m-euro debts

29 iul 2010 Autor: Adrian Cojocar

The main lenders of Flanco group, ING, Unicredit Tiriac and BRD, and the retailer's suppliers have agreed with the company's management and Transylvania Insolvency House to wipe out debts worth above 40m euros out of a 60m-euro total receivables volume registered after the company went insolvent in December 2009. From the maximum possible sum that could be recouped, namely 20m euros, a level of 4m euros is conditioned, though, on the trend of the retailer's sales in the next 3 years. Flanco International, the main company of Flamingo group, has recently submitted to the Bucharest Tribunal the company's reorganisation plan, due to be approved during the Lenders' General Meeting and validated by the syndic judge by late September. Only banks with secured receivables and the state can still recover something in the wake of Flanco's reorganisation, while suppliers have lost everything and shareholders will be diluted after the company is taken over by an investor. Flanco officials said they were very close to completing negotiations with an investor that will take over the company's majority stake.