Acquisitions

Giusti and Cartonificio Fiorentino saved by Pro-Gest

The Pro-Gest Group, operator in the paper production and processing sector based in Istrana-Treviso, has managed to avoid the crisis that looked set to strike the plants of Giusti and Cartonificio Fiorentino. It has in fact managed to run the two businesses directly, with the complete involvement of all workers and immediately re-start supplies and production.

In recent years, following the failure to approve the financial statements within the legal terms to do so, most of the credit institutes, scared off by the lack of information, had suspended facilities for a total that reached several million euros. Early September, just a few hours prior to the transfer of the majority package, the old shareholders approved the financial statements, which showed significant losses for 2013 for both companies. The banks, immediately convened by the new owners, were reassured on the route to be undertaken and first and foremost provided with clarity and transparency concerning the accounts and company position. In order to ensure this route, however, the facilities needed to be reassigned, within the limits that were still granted and had never been revoked. Only very few institutes responded positively and the position did not make it possible to advance invoices, despite enjoying excellent creditworthiness. The lack of credit effectively prevented payment of all suppliers and, in particular, the strategic ones. At this point, the situation degenerated rapidly resulting in a block of production in relation to the fact that the failure to make payment made it impossible to obtain supplies of raw materials or even delivery of the finished product available, with the risk of significant penalties.

With a view to keeping all jobs in pace, a rental contract was therefore stipulated for both businesses, ensuring all workers their places and that production would be resumed.

Bruno Zago, owner of Pro-gest Group.

Bruno Zago, owner of Pro-gest Group.

 

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