Tatravagonka Becomes the New Owner of Tžv Gredelj after Ten Years of Bankruptcy

July 16, 2021 – Ten years after the bankruptcy of TŽV Gredelj was initiated due to a debt of nearly 900 million kuna, the factory has a new owner – Slovak Tatravagonka. The decision was overwhelmingly approved by the creditors’ assembly at the Zagreb Fair, confirming the bankruptcy plan that allows for exiting bankruptcy and continuing operations.

Support of Creditors

The bankruptcy trustee Tomislav Đuričin emphasized that the first priority creditors, namely the current and former workers of Gredelj, supported the plan unanimously. Suppliers supported it with 90 percent of the votes, while the third group of creditors was in favor of the plan with 80 percent of the votes. Once the decision of the Commercial Court becomes final, Tatravagonka will pay the creditors within 30 days, allowing Gredelj to exit bankruptcy.

Plans and Investments

Tatravagonka committed to investing 45 million euros after the plan’s confirmation. Earlier this year, Gredelj and Tatravagonka agreed on the construction of 30 freight wagons, which have been delivered, and by the end of the year, the production of another 200 wagons is planned. According to Đuričin, production is expected to significantly increase in the coming years.

Jobs and Future

At the beginning of 2021, the factory had about 400 workers, and twenty new ones have already been hired. Given that Tatravagonka operates in numerous countries and employs about 20,000 people, it is believed that Gredelj has a stable and promising future. Some machinery from Slovakia has already been brought to Zagreb to initiate new production processes.

URSH’s Stance

The representative of the Union of Croatian Workers’ Associations Tomislav Rajković emphasized that workers cannot be completely satisfied as they had to give up 51 percent of their claims. However, he noted that the agony of the workers and the factory has ended. “According to the information we have, Tatravagonka is an employer with a positive attitude towards workers. We regret that the state did not recognize the significance of Gredelj, even though it was its owner” , said Rajković.

Other Creditors and Transfer of Claims

Among the few creditors who did not support the plan were the Tax Administration, the Ministry of Physical Planning, Construction and State Property, and INA. A significant role in the voting was played by the transaction in which banks sold their claims of 389 million kuna to the Czech company LB Investment, which supported the plan.

Conclusion

With the decision of the creditors and the entry of Tatravagonka, TŽV Gredelj gets a chance for a new beginning after a long ten years of bankruptcy. Although workers had to give up part of their claims, with a strategic partner and new investments, there is an opportunity for stable operations, job preservation, and strengthening production on an international level.