VEBA, a traditional Czech textile manufacturer with over a 160-year long history faced financial difficulties due to a sudden loss of sales and high indebtedness, which threatened to cause suspension of operations, mass employee layoffs and eventually force the company into bankruptcy.
VEBA, a traditional Czech textile manufacturer with over a 160-year long history faced financial difficulties due to a sudden loss of sales and high indebtedness, which threatened to cause suspension of operations, mass employee layoffs and eventually force the company into bankruptcy. VEBA specializes in jacquard woven cotton fabrics and in this segment ranks among the top in the world. The main product is African Brocade, a cloth which is then made into celebratory dresses worn primarily in Central and West African countries. The company is situated in a rural part of the Czech Rep where it employs over 15% of local workforce. VEBA was under imminent liquidity pressure, bank creditors were pressing for a significant repayment of their loans, and the life-long owners were unable to sufficiently finance the company.
Ensured uninterrupted survival of one of last textile manufacturers that remains from what used to be a traditional industry in Czech Rep.
Reorganization plan included restructuring of over 700 mil. CZK in debt.
Negotiated a standstill agreement with five banks to provide time for identifying a long-term restructuring solution.
Ensured preservation of over 700 jobs in rural part of Czech Republic