Sale of Assets - CKD DS
Advisory mandates managed by EEIP include the recent sale of assets for the bankruptcy trustee of CKD Dopravni Systemy (formerly CKD Tatra), the producer of one third of rolling stock operated in the world, especially trams, locomotives and metro vehicles. EEIP did not regard, from the point of view of a tax payer, providing of the government guarantees to the financially distressed firm as optimal. The company was restructured by "revitalization bankruptcy". For more information see the study Restrukturalizace firem: Predpoklad k realizaci mimosoudnich a soudnich forem (Czech only)On October 8, 2001 the sale contracts between bankruptcy trustee of CKD Dopravni systemy and rail vehicles producer Spolecnost kolejovych vozidel (SKV) were signed. SKV is 100% subsidiary of German giant Siemens AG. During January 2002 all conditions precedent of the contracts of sale of assets of CKD DS were fulfilled, incl. the sale of 250 th. square meters of land and 80 th. square meters of production halls.
On February 1st SKV freed up the sum of 750 mill. CZK, which was so far blocked on the escrow account of Ceska sporitelna.
Spolecnost kolejovych vozidel will be renamed Siemens kolejova vozidla, s.r.o. In line with its earlier statements and agreements, SKV employed around 800 staff in its new production capacities. In the Czech setting, the transaction was a rare case of a successful rescue through bankruptcy proceedings combined with an asset sale.
In Aprill 2005,the court approved the decision of the bankruptcy trustee to begin the pay-off of satisfaction receivables for deferred creditors. The amount dedicated for distribution is CZK 1.257 billion, which is 17% of the nominal amount of receivables ascertained for the purpose of bankruptcy proceedings.
Presentation: Financial restructuring of CKD (DS)
Siemens got ahead with CKD-DS restructuring...
