More news is emerging on Tatra’s financial condition:
Monday, March 22, 2010, (Czech Business Weeky):
Shareholders of debt-saddled Tatra truck maker will have to put the entire company up as collateral to loan-providing banks, the daily Hospodářské noviny (HN) reported. The Tatra general meeting, which will take place at the end of March, is to approve this step, the daily said, adding that the lending banks are Czech bank Československá obchodní banka (ČSOB) and French bank Calyon, which demand higher guarantees for their loans. Calyon already has Tatra’s immovables and stocks of Tatra subsidiaries as collateral. Tatra is still to pay over Kč 1 billion of the original loan worth Kč 1.9 billion to the banks.
UPDATE
(Hospodářské noviny)
Owners must make a pledge to the banks Tatra
CSOB and French Calyon demand higher guarantees for their loans. Tatra is paying nezpožďuje. But he has yet to pay a billion.
Kopřivnice Tatra shareholders are forced to put the entire company to banks to pledge. In late March, the General Meeting held to approve this step.
The reason? Lending banks, which are referred to the information available domestic CSOB and French Calyon, demand higher guarantees for their loans. Calyon has already pledged property Mountains and shares its subsidiaries.
”Like many other companies in this difficult time we had to conclude a new agreement with banks. Their arrest is part of the company,” said CEO and minority shareholder of Tatra Ronald Adams in an e-mail interview with the paper.
Warning auditors
According to Adams Tatra from the original 1.9 billion CZK of credit from banks is left to pay a little more than a billion crowns. Director points out that the car of their debts to banks, despite the difficulties caused by the crisis, the time: “We never neopozdili and I see no reason why we should not continue to pay according to schedule.”
That does not mean that the Tatra no problems with financing. In the spring of last year, KPMG warned that verify accounts of the year 2008 that the company “does not have sufficient volume of liquid assets to be able to ensure timely payment of obligations.” According to KPMG without new credit agreements, “there is substantial uncertainty” that the company will be able to continue in business.
General Meeting of the company pledge to the banks undoubtedly permit. Tatra safely controlled Tatra Holdings (the strongest it has a stake in India’s Vectra, the American investor Sam Eyde and Belgian KBC), the other shareholders hold just over eight percent.
Sales fell half
Tatra has not yet published any information on the economy last year. What will be proud of. Already in 2008, drove strong results of the Mountains crown, and then it hit the global market crash with a truck. In its “year of the consolidated loss exceeded 700 million. Last year, the automotive manufacturer said sales fell from nearly six billion by half.
”Disclose the results until an audit is not finished. But of course for us last year will be a loss,” said Adams. Rumors of alleged půlmiliardové loss, which said last year’s car expel Adams commented.
Nearest prospects are not favorable: “Orders for the first half are still small,” says Adams.
At the end of last year, while Tatra sent the last three decades off-road vehicles, which were part of a large contract for 588 cars for 2.7 billion crowns for the Czech army. Supplies for Tatra in crisis meant security. Demand for civilian production, heavy vehicles mainly for construction and mining companies, is still low. And to get up until neožije investment activity. “But they think that we are able to produce 1500 cars this year, and it will be better this year than last,” Adams hopes. “We will be profitable in December and January, we noticed a small profit,” he added.
Work three days a week
From the first start dubna workers in Tatra fully working again. The last five months, the undertaking goes only to 80 percent, production runs three days a week in desetihodinových innings. Outages persist for more than a year, last year in some months of operation he ran just three weeks. Tatra also released 1,400 people – over half the workforce.
Adams promises a lot of cooperation with U.S. corporations Navistar. With its military division is developing a new type of Tatra truck. “Cooperation progresses very quickly. The first two common cars, bearing the brand Navistaru the Tatras are finished. Will build on the world Eurosatory exhibition in June in Paris.” In addition, said hopefully develops contract negotiations for the Army of the United Arab Emirates. “The worst is behind us, we overcame a devastating crisis,” says Adams.
Unions believe the company
Similarly, Paul sees the future Baron, head of the union Mountains, which sit on the Supervisory Board: “According to the results for January and February is doing well now four Tatra, as well as subsidiary companies. Foundry to take in people, the parent Tatra recall some previously dismissed workers back to production. Baron Adams also agree that the first half will be difficult to Tatra, a real recovery in demand will come first in the second half.
TATRA, given its date of inception in 1850, ranks among the world’s oldest car company. The first car produced as early as 1897. The production of coaches but it has begun in 1850. In the subsequent glory automobile designer responsible Ledwinka Hans, who worked in the company 48 years.
Production
Even in the 80th Tatra years produced 15 thousand cars per year. Then the market collapsed, and until two years ago, Tatra was given to three thousand. Last year produced a thousand chariots.
Crisis
On the hard-hit carmaker Tatra crisis. Half of the 4,400 employees had to leave the company. Production last year fell almost a third of the level of 2007.