Prestigious Award for Deloitte for the Turnaround of the VEBA Textile Factory
TMA Turnaround and Transaction of the Year Award
One of the major Czech restructuring projects in recent years, turnaround of the VEBA textile factory based in Broumov, received the prestigious TMA Turnaround and Transaction of the Year Awards 2020 in the category Small Company Turnaround. The recovery process, in which Deloitte was also included, entailed preserving 600 jobs in an economically endangered region in the northeast of Bohemia as well as traditional production with a long history.
TMA (Turnaround Management Association) awarded the comprehensive reorganization plan and VEBA’s ability to continue its operation throughout the restructuring process.
“An elaborate reorganization plan prepared in cooperation with the CERHA HEMPEL law office helped us persuade creditors and investors to save the 160-year history of an enterprise with unique know-how. This was also facilitated by a favourable regulatory environment for restructuring in the Czech Republic.”
Radim Baše, Director at Deloitte responsible for restructuring services
VEBA: textile factory with history, successfully led out of insolvency
VEBA, a traditional Czech producer of jacquard woven cotton fabrics, was founded in the 19th century in Broumov. At the turn of 2014 and 2015, the company encountered difficulty due to an economic downturn on key markets, which together with other unexpected events led the company to insolvency. In 2019, VEBA’s creditors approved a restructuring project, which included, inter alia, involvement of a financial investor. Thanks to the new management, VEBA got in the black and this year, it has officially left the insolvency regime.
Aside from Deloitte and CERHA HEMPEL being involved in the recovery on the part of the debtor, investor Otakar Moťka and the ŽIŽLAVSKÝ law office, bank creditors Citibank, ČSOB, UniCredit Bank, Komerční banka and Raiffeisenbank as well as Josef Cupka as the insolvency administrator also participated in the process.
More detailed information about the award at TMA Turnaround and Transaction of the Year Award.