Iasitex pays $5.8m for Novatex

Iasi-based company Iasitex bought the assets of Novatex Pitesti held by the State Assets Resolution Authority (AVAS), paying nearly six million dollars for them. Novatex, which makes various fabrics and textile articles, is one of the companies that were transferred from the Finance Ministry to the former Banking Assets Resolution Authority (AVAS), so as to recover the money the Ministry paid when the state guarantees for foreign loans were honoured. Back in 1997, the Pitesti-based company took out a state-secured loan from Deutsche Bank Spain. The loan was used for retooling and never repaid. AVAS’ receivables over Novatex are in excess of $21.3 million. The company could not meet the deadlines in its debt-rescheduling plan and was therefore subject to debt enforcement procedures. Its assets were appraised at $9.7 million. This was the starting price of the auction, but the lack of bidders forced AVAS to hold a second. Bidders were again not forthcoming, even though the price reached $7.3 million, though Iasitex went on to become the successful buyer in the third auction. ZF