Transilvania Insolvency House - appointed official receiver of "Pantex" Braşov

Law firm Transilvania Insolvency House, the company which handled, among other projects, the liquidation of Braşov-based companies "Tractorul" and "Rulmentul", two of the most important factories of the county, will now handle the insolvency proceedings of "Pantex" Braşov. The Cluj-based firm was appointed by the Court of Braşov, at the end of last month, as receiver of the company, a press release sent to the Bucharest Stock Exchange states.

The reorganization of the company will allow it to pay off all of its debts towards its creditors based on a payment schedule, and it will also involve the operational and financial restructuring of the company.

The management of "Pantex" Braşov made the decision to declare the insolvency of the company and to have it enter reorganization in a meeting of the Board of Directors, held on June 19th. Neculai Vrabie, the company"s manager, announced that the decision was made because the financial crisis led to a decline in orders and output of the company, leading to significant operating losses and to the accumulation of major arrears to the state and local budget.

Braşov-based company "Pantex" ended the first quarter with losses of 871,438 lei, after posting 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, whereas its expenses increased 6%, from 2.530 million lei to 2.699 million lei.

The Braşov-based company recently entered a joint venture with Advensa Consulting SRL Iaşi, owned by one of the shareholders of "Pantex", Ionuţ Gabriel Nechita, for the purpose of manufacturing and distributing trimmings.

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%.