Vítkovice Engineering starts insolvency proceedings

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.

Author: Chris Johnstone