"Pantex" Braşov enters insolvency

In a press release sent to the Bucharest Stock Exchange this week, "Pantex" Braşov announced it has entered insolvency and has decided to draw up a plan of legal reorganization. The managing director of the company, Neculai Vrabie, said that this decision comes as a result of the financial crisis, which led to a drop in orders received by the company, causing its output to shrink and leading to the accumulation of large losses and debts to the local and state budget.

Pantex Braşov posted losses of 871,438 de lei at the end of Q1 2010, after making a profit of 39,036 lei in Q1 2009. The company"s total revenues dropped 30%, from 2.585 million lei to 1.830 million lei, while its expenses increased 6%, from 2.530 million lei to 2.699 million lei.

The main cause of dropping revenues was caused by a generalized drop in orders for the items produced by the company, regardless of item, color and size, as a result of the financial crisis. "In spite of all our efforts to widen the range of products offered to our customers and the search for new customers, complemented by our attempts to lower our utilities expenses, we failed to secure a profit. Even though the company is seeing losses, it will still be required to pay taxes - the so-called lump sum tax ", a press release by the company states.

The company recently entered a joint venture with Advensa Consulting SRL Iaşi, which is owned by one of the shareholders of Pantex, Ionuţ Gabriel Nechita, for the purpose of producing and distributing lacing products. The contract has a duration of three years, and Pantex will contribute working capital, while the other company will finance the purchasing of the necessary raw materials.

The shareholders of the company are the general manager of the firm, Neculai Vrabie, who owns 9.94%, chief financial officer Maria Tudora, with 10.73%, Nicoleta Matei - 11.99%, Victor Vrabie - 12.43%, SIF Moldova - 6.96%, the company Textile Blue Wash - 10.74%, with other shareholders controlling 37.21%.