The Slovenia Times

Aero Files for Receivership


The company attributes a large part of last year's loss to the "negative legacy of the past". Out of the EUR 7.7m loss, EUR 5.1m were write-downs.

Net sales revenue was down 21% to EUR 10.6m. Aero ended 2014 with a negative capital of EUR 2.5m.

The company, which exports three quarters of its output, presented a plan for restructuring to owners and creditors at the end of last year.

The plan envisaged immediate cost cuts and moving from Celje to a single location in Ĺ empeter. But the company also needed fresh funds to carry out the move, buy supplies needed for production and pay for redundant workers.

"The plan was based on the fact that the company has competitive products and buyers for them. Aero is still a respected brand in Slovenia and the countries or former Yugoslavia.

"But without fresh funds a business turnaround could not be carried out," the company said, adding that all options for salvaging the company had been exhausted.

Aero's subsidiary Aero Ida, a workshop, continues with its production of tempera points and watercolours, adhesive tapes and tissues, its core programme.

The company, employing a total of 44 people, 23 of which are disabled persons, finished 2014 in the black.

Aero was founded in 1946 from a subsidiary of V. Brauns set up in 1929. In 1992, Aero, which exported 80% of its products, set up Aero Ida.

In 2004, it acquired company Balkan from Serbia.

Financial problems started in November 2008, when production of adhesive tapes had to be scrapped due to high levels of toxic emissions. Some 90 of the 316 staff were laid off.

Gradually, the workforce was reduced to what are presently 155 employees.

Last year, all of Aero's shareholders, the biggest being the state-owned PDP restructuring firm, bank Probanka and logistics company Intereuropa, lost their shares, as banks creditors took over.

Subsequently, the EUR 3m in claims was turned into capital.

Currently, the biggest, 62% share, in the company is held by the Bank Asset Management Company (BAMC), which replaced the supervisory board last year and appointed a new CEO. Gregor Kranjc led the company until the end of March.

DUTB was collecting offers for all claims to Aero amounting to EUR 6.6m until 23 March, but unofficially no interest was attested.

After the daily Dnevnik reported that Aero would need EUR 1.5m to be able to overcome liquidity problems, the bad bank finally decided against supplying it with the necessary funds.

Aero, which also has EUR 12m in unpaid loans, has seen its net revenue plummet since 2009. It plunged from EUR 27.8m in 2009 to EUR 13.5m in 2013.

In 2013, Aero's loss topped EUR 4.2m.


More from Nekategorizirano