It was requested the bankruptcy of SIDEX

published by Aurel Stancu on November 13^th, 2001 in Viata Libera Galati

The liquidator of COMTIM Timisoara requested, on Friday, the initiation of bankruptcy procedures of SIDEX. In truth, it is the issue of a 33 million lei (1,000US$) which is owed by ALIMSERV, company separated from SIDEX

Through out the time, SIDEX, was forced to endure a lot. However, the current situation is almost taken out of an absurd play. We categorized the situation this way for the elegance of the expression although we could use other stronger ones. In a nutshell, the liquidator of COMTIM SC Timisoara, the company PRICEWATERHOUSE&COOPERS MANAGEMENT CONSULTANTS SRL, is requesting no more or less than the bankruptcy of SC SIDEX SA. This is a scary thought, as a few days back the contract for the privatization of SIDEX was signed, and such bad news could go around the world - Unbelievable! The State has sold his most important company with lots of fanfare and in reality the company is bankrupt!

Where is the truth in this case? There is currently a lawsuit between ALIMSERV SA Galati and COMTIM Timisoara, lawsuit that brought ALIMSERV in front of the Timis Court for the non payment of a bill that dates back to 1998. When SIDEX was summoned in court the Judge was informed that the company ALIMSERV was split off from SIDEX. It was specified that through this separation, the group of restaurants which was owned by SIDEX has a separate legal entity, taking in the separation the assets and the debts of the company. Obviously, this case does not involve SIDEX, but ALIMSERV.

The Timis Court, through its decision no.1402/12.09.2001, allows in the lawsuit brought forth by SC COMTIM Timisoara, through its liquidator against SC ALIMSERV, for the payment of 14.014.948 lei, the amount of the unpaid merchandise, plus 16.588.642 lei as interest.

What followed boggles the mind! Friday, November 9th, 2001, at 15:10, a note from the Galati Court is received by the SIDEX’s legal department notifying the initiation of bankruptcy procedures against SIDEX. Pricewaterhouse& Coopers requests the bankruptcy against SIDEX, based on the failure to pay the amount allocated by the Court’s decision 1402/2001, more precisely 33.114.805 lei, although the decision is against ALIMSERV, and not SIDEX. This can cause a big headache! To initiate bankruptcy procedure against SIDEX for 33 million, debt that is not that of the Steel Factory, could be called a grave error, or a big stupidity or even a stealth maneuver, anyhow the words fail to describe it properly. The director of SIDEX’ legal department Ms. Mirela Gatin, after the first moment of numbness contacted immediately the representative of the liquidator Mr. Radu Bufan. From the telephonic conversation, Ms. Mirela Gatin immediately realized that the liquidator did not understand what the split-off (separation) of the two corporations was supposed to mean and he did not carefully read the Judge’s decision.

The conclusion that Mr. Radu Bufan draws from this is that ”SIDEX does not like being sued.” As such, SIDEX is forced to waste its resources on a useless trial, that is not even its own, for a misunderstanding. Ignorance could be an explanation but not an excuse. The Justice may be blind but this should afflict the Judges or the liquidators when dealing with the obvious. In a very competitive world like that of the steel, any important news, like that of a bankruptcy, even false but well used, could bring grave prejudice to the company. The liquidator of COMTIM did not understand or he did not want to understand the situation?

The Romanian version can be accessed on line here.

The Climax of the absurd

published by Aurel Stancu on November 14^th, 2001 in Viata Libera Galati

The outstanding debt for which COMTIM’s liquidator has requested the bankruptcy of SIDEX was paid by Alimserv two years earlier

The management of SIDEX asked the question two days ago whether when COMTIM’s liquidator has requested the initiation of bankruptcy procedures for SIDEX for a debt of 33 million lei, interest included (a debt outstanding of Alimserv, a separate company from SIDEX), if this request was made in error or it was part of hidden strategy. Two days after the question was raised, the facts are clearer: it was due to stupidity. Or neglect. Or indolence.

Here is the story behind this absurd trial. Through contracts between Comtim Timisoara and Alimserv, when was still part of SIDEX, Alimserv had outstanding bills for approximately 300 million lei. This debt was paid through a few transactions based on a tabled schedule. The last transaction represented 150 million lei. At the time when Amlimserv separated from SIDEX, Ms. Director Elena Tudose started paying out the outstanding bills. The last bill payment was made to Comtim, for the amount of 18 million lei on 20.12.1999, this ending any contract between the two companies. The liquidator Pricewaterhouse&Coopers sued SIDEX for an outstanding debt of 14 million lei as based on one payment document that is how much was left out of a 150 million lei debt. Nobody stopped the people in Timisoara to validate their own payment schedule table, it was just pure laziness. In the mean time Alimserv paid its debt more than two years ago.

Comtim’s liquidator found in the company’s documents just the bill and not the payment. So he started a lawsuit at the Timis Court. Knowing that their position was beyond reproach, the folks from Alimserv have communicated with the liquidator, but because the court date in Timisoara was at the same time as another court date in Galati, nobody showed up in Court. This was interpreted by the Judge as an admission of guilt, thus the absurd decision.

Yesterday the liquidator was faxed the credit note and admitted its error and apologized. But how is it possible that these liquidators only err in someone else’s detriment?

The Romanian version can be accessed on line here.

For background information on SIDEX go to the BBC’s Web site.

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