Business News

Prevent Global Auctions Off Brazilian Subsidiary

Slovenj Gradec, 28 November (STA) - Prevent Global, the bankrupt car-seat maker, has manged to auction off a 95% stake in its Brazilian subsidiary Prevent Thierry Brasil, selling it for EUR 2.5m to German company TT Shop Rode. The sale of Prevent's remaining assets is meanwhile continuing.

A representative of the Toyota group was the second bidder in what was already the third auction for the subsidiary that employs around 600 people. The starting price in the auction was EUR 1.9m.

Receiver Boris Kastivnik told the press in Slovenj Gradec on Wednesday that the sale absolutely needed to be wrapped up, as Volkswagen as the only client of Prevent had set "the very stiff condition" that cooperation would be abolished in case the company is not sold to an owner with adequate financial backing.

If the auction had failed, the company could have gone out of business, leaving Prevent Global's bankruptcy estate without EUR 2.5m to pay creditors, Kastivnik added.

Commenting on reports by the daily Večer that TT Shop Rode was informally connected to Prevent DEV, a company controlled by former co-owner of Prevent Global Nijaz Hastor, he said he was not aware of any links and that he fully trusted a certified statement by TT Shop Rode that it met all conditions set down in Slovenia's insolvency legislation.

Kastivnik explained that activities for the sale of the remaining assets of Prevent Global, which is in receivership but operating in the black, were continuing.

He proposed to the board of creditors in October the sale of 14 assets valued at a total of EUR 16.5m. Also being collected are non-binding bids for airport operator Aerodrom Maribor and for a 79% stake in Prevent TRO. Moreover, expected shortly is the decision to sell the company's subsidiary in Moldova and in Prevent Moduli.

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