Only two of the 11 companies with tens of millions of euros inturnover, which the crisis pushed into insolvency in 2009, havemanaged to pass the first milestone - the approval of thereorganisation plan by the creditors. But how close are Flanco andLeonardo to coming out of insolvency?
A company can go from reorganisation to coming out of insolvencyin three or four years' time, but retailers betting on the survivalof their business want to speed up the process in order to regainsuppliers' confidence, say insolvency experts.
The Flanco home appliances store chain, put up for sale by creditorbanks, could make insolvency history as the fastest recovery of abusiness worth tens of millions of euros. The company has recentlyannounced that its reorganisation plan, which provides for exitinginsolvency in a maximum of six months, has been voted for by thecreditors. Until full recovery of the business, which in factamounts to coming out of insolvency, the company needs to repay allits debts, as committed to under the reorganisation plan, and keepfrom accumulating new debt, say insolvency experts.
"In Flanco's case, it all depends on whether the reorganisationplan is observed or not and on how viable it is. It is alsoimportant for the company to have sufficient working capital," saysArin Stănescu, president of the National Romanian Association ofInsolvency Practitioners.
The plan of the home appliances retailer provides for a 4million-euro capital injection, after a new investor strong onliquidity joins the shareholder structure, with the transaction tobe finalised in a few weeks' time.
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