VALIDITY OF TIGAR a.d. PREPACKAGED REORGANIZATION PLAN
Commercial Court in Nis adopted the Prepackaged Plan of Reorganization of Tigar, Pirot
By the Decision of the Commercial Court in Nis as of June 1, 2015, the Prepackaged Plan of Reorganization for the company Tigar ad has become valid before the law. The company Tigar remind us that one year ago, the General Assembly has made, with prior approval of the largest creditors, a decision to initiate a Prepackaged Plan of Reorganization as a model for solving the accumulated debt from the previous period.
According to Nebojsa DJENADIC, Managing Director, the adoption of the Prepackaged Plan of Reorganization is a mere formal confirmation that Tigar is on the right track. We largely apply a part of the Prepackaged Plan of Reorganization that refers to business consolidation. For two years, we have more than 70% of engagement capacity, we work on the rationalization in all segments and Tigar becomes an efficient and sustainable system. Huge efforts have been made in the past by my associates and all Tigar’s employees. There was needed a lot of understanding. The fact is that we had it from our largest creditors, primarily from the state, which is the largest single shareholder of the company. I am convinced that this wouldn’t happen if the company itself did not show its power embodied in people, product range and market. We are aware that this is just a chance for which we fought. There are still a lot of challenges and difficult decisions to be made. We are now to accomplish our obligations provided within the Prepackaged Plan of Reorganization for Tigar AD, as we’re already doing it for Tigar Rubber Footwear. It will not be easy, but 2 + 5 years and significantly more favorable interest rates compared to the current situation are offering to the company a good opportunity, concludes Djenadic.
In 2014, Tigar ad recorded a decrease in business loss by 44 percent compared to the year 2013. At the same time, Tigar AD continue with its business operations without additional borrowing. In the part of the realization from the sale of rubber footwear was recorded an increase of five percent in 2014 when compared to the previous year, with significant impact of the increased growth in sales on the domestic market by 15 percent.