Sklo Bohemia declared insolvent

Glass maker Sklo Bohemia Svetla nad Sazavou is insolvent, the municipal court in Prague ruled on 14 October 2008
The company, which is member of Bohemia Crystalex Trading (BCT), has been in insolvenc…

Glass maker Sklo Bohemia Svetla nad Sazavou is insolvent, the municipal court in Prague ruled on 14 October 2008 The company, which is member of Bohemia Crystalex Trading (BCT), has been in insolvency proceedings since 22 September 2008 owing to a lack of working capital. Creditors now have 40 days to register their claims. It is another step in insolvency proceedings at the company. In cooperation with the owners and creditors, the court will now decide how to resolve the situation, whether by reorganising the company or declaring it bankrupt, with the latter the more likely prospect. The 1,230 employees of Sklo Bohemia have not been paid and production at the glass factory was stopped over a week before the court ruling, the same as at sister company Sklarny Bohemia of Podebrady, although the latter is not yet subject to insolvency proceedings. On 14 October 2008, managers at Sklo Bohemia and Sklarny Bohemia told trade unions of their plan for mass lay-offs at both companies. A final decision on how many jobs will go has not yet been made.