Major glass producer axes two of its plants to stay afloat
A long tradition of Bohemian glass making almost came to an end on Monday when Bohemia Crystalex Trading, the Czech Republic’s largest producer of glass, was left little choice but to consider closing down all of its four plants due to severe financial difficulties. But late Monday evening, the company struck a deal with its creditors, buying time to seek investors who could save the glassworks from going under. The deal has come at a price: two of its facilities will still close down.
“Any intervention with public money and any saturating or taking over the debts by the state is out of the question.”
“If someone claims that in case the state intervenes, we would be returning to socialism, let me ask, what is going on in the United States? Is that a beginning of socialism too? The government doesn’t seem to care now, but it will care alright. Unlike the other owners, the state will have to take care of the sacked employees.”
On Tuesday, the management announced that part of the company had been saved, at least for some time. The company struck a deal with its creditors and applied for moratorium under the insolvency act. Petr Smutný, from Price Waterhouse Coopers, is a consultant for Bohemia Crystalex Trading.
“Last week, we were approached by a number of investors, and I mean more than ten investors, who expressed an interest in understanding the current situation, asking whether some of the businesses were to be available for sale as operating units. They expressed interest in the plants Kavalier and Crystalex which confirms that our selection of the viable business was correct.”
Bohemia Crystalex Trading, which ranks among the top ten of the world’s glass producers and annually exports some 30 billion crowns, or 1.7 billion US dollars worth of glass, will now have 90 days to find an investor, and save the company from going under for good.