Bankruptcy

The tourism industry must benefit from emergency compensation and any closure of the activity in HoReCA makes it even harder to restart and throws even more employees into unemployment and operators in bankruptcy, the president of the Romanian Hotels and Restaurants' Employers Association (HORA) Daniel Mischie told a press conference on Wednesday.

This year, the government intends to employ à la carte measures - adjusted to the economic profile of each debtor - to resolve the major problem of private debt management.

The pandemic aid for business envisioned by the government will last far enough to keep intact a minimum number of jobs, according to financier Emil Harsev. He told bTV that the Bulgarian economy was doing relatively well although the forecasts were quite gloomy.

Harsev gave an example of the extractive and processing industries in Bulgaria, which are less affected than expected.

Wednesday's news of former businessman Babis Vovos' arrest over unpaid debts seemed ironic as it coincided with the activation of the law concerning the double rehabilitation project for the areas of Votanikos and Ambelokipi in Athens.

The government will submit to Parliament in September a new payment schedule for debts to the state incurred during the coronavirus pandemic.

These new debts will be paid either in 12 interest-free installments in 2021 or 24 low-interest installments. The amount of unpaid taxes and previous debt settlements that froze during the period from March to May exceeds €2 billion.

Banks are raising serious concerns about the draft bankruptcy code the government is preparing and the clauses on the protection of borrowers' main residence, believing it will serve as another method for delays at the expense of lenders and the state.

The transformation of Pasal Development should be completed during the summer, allowing the listed property development and management company to leave behind it the troubles of the past with the support of strategic investor Sterner Stenhus.

Two full years after the scandal broke at Folli Follie, the troubled jewelry company's new management is close to completing its streamlining plan and starting the restructuring process according to the bankruptcy code, Kathimerini understands.

The Larco General Mining and Metallurgical Company is one step from closure, after entering receivership status in March to be sold to a private investor or declare bankruptcy.
The problematic state company suffers losses of $8,000 per ton of nickel output, and with a daily output of 15 tons, the company is posting losses of $120,000 every day.

Debtors will enjoy total relief from their debts to banks, the state and other creditors 24 months after they file for bankruptcy and 12 months after the actual bankruptcy comes to a close, provided they have had all their assets liquidated after a court decision, according to the new bankruptcy code blueprint Kathimerini has seen.