Vitkovice Heavy Machinery is likely to go into bankruptcy, as its creditors no longer believe in the company’s ability to climb out of the financial hole it’s fallen into. The company owes CZK 1.7bn to 163 creditors while roughly 70 of its staff of 560 are currently working only because their notice period hasn’t ended yet. The company has been in insolvency proceedings since March, but its management is no longer trying to carry out a restructuring of the company. Its insolvency manager Lukas Zrusta said the current economic client had made the company’s survival unlikely. “Because of the epidemic, the company was unable to achieve the required economic results,” he said. “As a result, the debtor has rescinded its proposal for clearing its debts.” Zrust said this left him with no choice but propose bankruptcy proceedings for the company, which is owned by Jaroslav Strnad’s Czechoslovak Group.
