Meva Could Learn From Flanco In Its Reorganization

06.03.2011 By Tiron Mirabela

The reorganization of rolling stock manufacturer Meva, controlled by Cristian Burci, could be done based on the model of home appliances retailer Flanco, whose assets were taken over by an investor and registered to a new company, with the new shareholder structure that also included creditor banks.

Meva's reorganization plan was approved by the General Meeting of Creditors, according to Casa de Insolventa Transilvania (CITR), the company's court-appointed administrator. It provides for the commercial operations to be continued, the sale of the company's tangible and intangible assets (land, equipment, brand, logo and goodwill), paying out the debt to creditors in installments, as well as keeping the 250 employees, according to the latest data supplied by the insolvency firm.

Restructuring will be done in 18 months.

In the coming period, there will be a vote on the reorganization plans of Astra Vagoane Arad and Romvag rolling stock plants, also held by Burci.

"We want to bring in a new investor, and register the assets to a new company. This way, one gets rid of the company's debts. Meva's reorganization could be done using Flanco's model," said Radu Lotrean, managing partner of the insolvency firm. He did not wish to comment on what the new shareholder structure could look like, nor on Cristian Burci's role in it. At Flanco, the former shareholders are not part of the new company.

In the case of Flanco, which became insolvent in 2009, and had CITR as court-appointed administrator as well, tangible and intangible assets were 60% sold to the Asesoft group, held by Sebastian and Iulian Stanciu, while the rest of the shares remained in the hands of the creditor banks - ING Bank, UniCredit Tiriac Bank and BRD.