Glaskek declares bankruptcy with substantial debts

TALLINN — According to information made public by the bankruptcy court it appears Estonian window manufacturer Glaskek, which was declared bankruptcy in August 11, owes a whopping 310 million krooni (€19.8 million) to Swedbank.

Glaskek’s total marginal debt exceeds 364 million krooni (€23.3 million), yet the company has assets for 336 million krooni (€21,5 million) including real estate, furniture and other things. Nine million krooni (575,203) of the debt is in unpaid salaries and wages, and 14 million (€894,760) is tax debts. The company had 2,000 employees, but has not resolved contracts with 91.

It’s unclear how much Glaskek will be able to pay off and to which parties.

“Currently it seems that a recovery is not possible as the assets do not cover all the expenses,” bankruptcy registrar Eha Pehk told the Äripäev newspaper.

The bankruptcy registrars decided Thursday that products still in the factory should be delivered to the clients as soon as possible, as that would bring more cash in to cover some of the debts.

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