Ves Sighişoara Council starts the insolvency procedure

• The company had negative equity of 38.8 million lei at the end of the third quarter of last year

The Board of Directors of the enamelware manufacturer Ves Sighişoara (VESY) decided to start the procedure regarding the opening of the general insolvency procedure, submitting the request to the Mureş Specialized Court, according to a company report published on the Bucharest Stock Exchange (BVB).

In the request, the company expressed its intention to restructure based on a reorganization plan, in accordance with the legal provisions, which includes the following directions of action and measures: strategic reorientation and change of the business model; debt restructuring and the sale of assets from the heritage.

The first deadline regarding the resolution of the Ves Sighişoara Council application is today, January 17, according to the BVB report.

In December last year, the Mureş Specialized Court ordered the closure of the company's preventive arrangement procedure.

For the third quarter of 2023, the company reported a turnover of 4.3 million lei, 51% below that of the same period of the previous year, and a loss of almost 5.2 million lei, similar to the quarter the third 2022. According to the BVB report, the drop in receipts was caused by a lack of orders. Also against the background of the lack of orders, operating expenses were reduced by 41%, from 15.3 million lei in the third quarter of 2022, to nine million lei in the third quarter of 2023. Thus, for the in the third quarter of last year, Ves Sighişoara reported a negative value for the EBITDA indicator (Earnings before Interest, Taxes, Depreciation and Amortization), of 4.3 million lei, similar to that of the third quarter of 2022.

After the first three quarters of last year, the company's total assets amounted to 27.6 million lei and total liabilities were 66.4 million lei, so that Ves Sighişoara had negative equity of 38.8 million lei.

In recent years, Ves Sighişoara had losses on the line.

Ves Sighişoara is 95% owned by Chimsport Orăştie. In 2020, the Finns from Amer Sports, one of the most important manufacturers of sporting goods in the world, with brands such as Salomon or Wilson, took over the winter sports equipment factory of Chimsport, with which they had an exclusive partnership of production, according to stiriletransilvaniei.ro.