Flanco asks creditors to vote on new investor today

Flanco’s creditors, the biggest of which are ING, Unicredit Țiriac Bank and BRD, are today voting on the reorganisation plan of the network, which entails a capital inflow from a new investor in this business in order to repay the debt to banks.
The administrators of the company that has been insolvent for about eight months recommend the transfer of the stores to a newly established company, which should later get a capital inflow from a financially powerful investor.
The biggest creditors of Flanco, ING, Unicredit Țiriac Bank and BRD – Groupe Societe Generale have about 12 million euros to recover from the retailer.
Flanco’s shareholders and administrators are currently in talks with two investors that could buy into the company via a capital inflow.
The short list of those interested might include Dan Adamescu, one of the shareholders, Lorand Szarvadi, the minority shareholder of competitor TechnoMarket Domo or an Asian trade group, and the deal could put the company’s value at tens of millions of euros, market sources say.
Flanco posted some 140 million euros in business in the first eleven months of 2009 and then went insolvent, as revealed by the information provided by the operator.