The municipal court in Prague appointed an interim receiver on 3 October 2008 for glass maker Sklarny Bohemia of the BCT group which is in insolvency proceedings, according to data from the insolvency…
The municipal court in Prague appointed an interim receiver on 3 October 2008 for glass maker Sklarny Bohemia of the BCT group which is in insolvency proceedings, according to data from the insolvency register. At the same time the court issued a preliminary injunction banning the company from handling its assets without the approval of the interim receiver. In addition, all payments will have to go to the receiver, Prague-based Aure. Citibank Europe, a member of a syndicate to which the BCT group owes nearly CZK 2.848 billion, also applied for the move on 1 October 2008. Sklo Bohemia Svetla nad Sazavou of the same group, also in insolvency, has filed the same application but the court has not yet issued a decision. Sklarny Bohemia launched production in 1877 and has suspended operation several times since then, the first time being in 1886 because of debts. During a crisis in the 1930s, the factory faced demolition. Extensive renewal and modernisation came in the 1950s. The glassworks were privatised in 1993 and have been part of the BCT group since 1999. Demand for the company“s main product, lead crystal, has plummeted. With more than 500 staff, Sklarny Bohemia is one of the largest employers in the Nymburk district in central Bohemia. There was no production at the company in the week ending 4 October and only 30 employees were working to ensure basic operation. It will be up to the insolvency administrator to decide on the future of the glassworks. BCT employs more than 5,000 people. The group realised orders worth more than CZK 5.5 billion in 2007. BCT has property ties to the firm Porcela Plus. Together, they employ 7,000 people. Since 22 September 2008 both companies and their subsidiaries have been in insolvency. Owing to a lack of operating capital, the court started insolvency proceedings in the group“s other companies, Sklarny Kavalier Sazava, Crystalex Novy Bor and Porcela Plus.