Small Company Turnaround - VEBA, textilni zavody a.s.
Otakar Mot’ka, VEBA, textilni zavody a.s.
Petr Kalis, C.H. Kalis & Partners s.r.o., advokatni kancelai’
Radim Base, Deloitte Advisory s.r.o.
Josef Kotrba, Deloitte Advisory s.r.o.
Martin Blecha, Deloitte Advisory s.r.o.
Petr Vosahlo, Citibank Europe plc
Pavel Prochazka, Komercni banka, a.s.
Jan Vitacek, Ceskoslovenska obchodni banka, a.s.
Josef Cupka, Advokatnf kancelai’ JUDr. Josef Cupka
Michael Zizlavsky, ZIZLAVSKY, advokatnf kancelai’ s.r.o.
About the Turnaround:
The restructuring of VEBA, a traditional Czech textile manufacturer, was one of the largest and most complex insolvency cases resolved by reorganization under the Czech Insolvency Law in recent years. A sudden and significant drop in sales in key African markets resulted in over-indebtedness and subsequent illiquidity, threatening to cause a suspension of production and mass layoffs (850 employees) in a remote region of the country with limited alternative employment opportunities.
The skilled team of advisors succeeded in identifying an investor, who stepped in just as an insolvency petition was filed by a creditor. The transfer of ownership, debt restructuring, and consolidation of assets within the group was ultimately realized via a prepack reorganization. This enabled VEBA to avoid imminent bankruptcy and offered both secured and unsecured creditors a higher level of claim recovery. Following the successful fulfillment of the reorganization plan, VEBA rationalized its operations and faces favorable growth prospects.