Octavian Radu's shipping business in insolvency

Shopping business TCE Logistics, part of RTC group, held by businessman Octavian Radu has claimed the start of insolvency proceedings, the legal administrator being the Insolvency House Transilvania.

The legal restructuring of the business is a direct consequence of the economic crisis that has severely affected the company in 2009.

The aggregate debt to third parties stands at €8.5 million, of which €3.3 million at banks.

The announcement comes after Diverta’s recent insolvency claim for legal restructuring. Diverta is held by the same businessman Octavian Radu.

“The year 2009 has been very difficult for the market. Our strategy to optimize the business envisaged layoffs and a set of company-wide cost-containment measures, and the results were very important: we have managed to stabilize the company over the last few months of 2009. However, we still feel the effects of the economic recession, due to the mounting debts”, said Sorin Sofian (photo), CEO TCE.

TCE recorded revenues of €19.5 million but negative financial results. In 2009, the company’s operating profit stood at -€0.350 million.

The most notable anti-crisis measures were the layoff of 655 workers, the sale of 270 cars from the company’s fleet and a reduction in payroll funds by 37%.

The cost-cutting measures have restored the company’s financial health since second half 2009 as the operating profit for the last months of the year turned positive. The restructuring of the seven business lines have ensured a better transparency and an optimized cost control.

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