BIKH files for bankruptcy after talks fail

Cold cuts producer BIKH has filed for bankruptcy in a bid for protection from its creditors, which could confiscate its assets, including its stock of products.

If the court that examines the application on Friday accepts the company’s application, then it will receive a three-month reprieve; it will become clear in that period whether BIKH stands a chance of surviving or will be definitively led down the path of resolution.

The bankruptcy application comes in the wake of the company’s unsuccessful negotiations with its creditors, which was hardly surprising: The difficulty of the project became evident when the creditors disputed the amount of BIKH’s debts.

The slow pace and complexity of the negotiations drove away the investors that had been interested in the company, among them Spyros Theodoropoulos of Chipita and Dimitris Vintzilaios of Impala Invest.

Already a great number of confiscation orders have been issued by individuals and companies, as well as by credit institutions. The value of raw materials and merchandise BIKH has in its hands adds up to 773,372 euros, while its total obligations run up to 44.65 million euros.