One of the Czech Republic’s flagship engineering companies, Vítkovice
Engineering, has said it has itself proposed insolvency proceedings. The
move was indicated Friday by details on the insolvency register.
Vítkovice Engineering early this week appeared to be lined up for a lifeline from the arms company of Czech businessman Jaroslav Strnad. He however announced midweek that he intended to invest in another part of the Vítkovice Group, Vítkovice Heavy Engineering. That move has been approved by a court.
Vítkovice Engineering employs around 650 in and around Ostrava. Many of them have been sent home since January and are waiting for unpaid wages. Operations at the firm have been interrupted because there is not enough cash to pay for raw materials or key components.
The investment group PPF of Petr Kellner has signed an agreement on the
purchase of 100 percent shares in the Plzen engineering company Škoda
Transportation. The sales deal was confirmed by PPF spokeswoman Zuzana
Migdalová, though she did not specify how much PPF paid for the company.
According to the business news site ihned it was over 10 billion crowns. With its 5,300 employees, Škoda Transportation is the biggest transport engineering company in Central and Eastern Europe.
The Brno International Engineering Fair opens its doors to visitors on
Monday, October 9th. Over 1,600 companies are exhibiting their products
this year with an emphasis on industrial automation.
The strongest representation is from Germany, India, Slovakia and China. The fair, which lasts until Friday, is accompanied by a number of side events such as lectures and seminars.
An insolvency manager has called for would be bidders for parts of one of the Czech Republic’s biggest engineering companies, Vítkovice Power Engineering, to register their interest by August 21. A court earlier this week approved the start of bankruptcy proceedings at the firm after they were requested by managers. They argued that attempts to keep the company alive through reorganisation were pointless. Vítkovice Power Engineering employs around 800 and is renowned for its nuclear engineering operations. Creditors have registered claims of around 71 billion crowns.
Prague Municipal Court on Friday announced the bankruptcy of engineering company ČKD Praha Diz, a significant player on domestic and international markets. Nobody in court opposed the proposal from creditors. Insolvency proceedings related to ČKD Praha Diz started already in August. The company has been involved in a long running legal battle with Prague City Hall over completion of the Blanka road tunnel in the capital. An arbitration court at the end of August ruled that Prague City Council did not have to pay 1.7 billion crowns sought by the engineering company in connection with the work.
Vítkovice Power Engineering, one of the key daughter companies of the engineering conglomerate Vítkovice, has filed for “reorganization“ bankruptcy. The company reportedly owes close to two billion crowns to over 700 creditors. The regional court in Ostrava, which was due to deal with a proposal for bankruptcy against the firm by one of its biggest creditors, Westag Invest, on Friday has cancelled the hearing.