Maribor, 18 February (STA) - Insolvent builder Cestno podjetje Maribor (CPM), which employs around 700 workers, filed a proposal for receivership with the Maribor District Court on Friday. The move follows an unsuccessful attempt of court-mandated debt restructuring launched last month.
The CPM management said that the main reasons for the receivership proposal were a considerable drop in public procurement in 2009 and cuts in investments plans at the national level.
Internal reasons meanwhile include slow restructuring and non-implementation of radical measures such as cutting the work force.
"We need at least EUR 6m in monthly turnover in order to operate normally, which is impossible considering the current demand for construction works in the country," said procurator Marko Plecko.
According to him, the company has not been not able to secure regular pay to its workers and repay debts with incoming revenue. CPM has decided for this extreme measure because it does not see the situation in the construction sector improving soon, Plecko said.
In its proposal for debt settlement, CPM has proposed that it repay 35% of its EUR 68m debt to its non-preferential creditors as part of court-mandated debt restructuring in a period of six and a half years.
The company's biggest creditors are banks Banka Celje, NKBM, NLB and Gorenjska banka and fuel retailer Petrol.