In December 2011, Radece Papir has entered into a compulsory settlement agreement under the Slovenian insolvency law. Three months later the financial situation is still critical.
Paper production at the ailing Slovenian fine and banknote paper producer Radece Papir remains idle for the time being. According to the insolvency administrator, Radece Papir is still in negotiations with the banks on a €3m credit line, the money which the company direly needs to buy raw materials and restart production. If the parties do not agree on the working capital loan, Radece Papir may face bankruptcy, the administrator explains. A decision is expected by the end of March at the latest.
Radece Papir runs two paper machines and can churn out 36,000 tpy of uncoated woodfree paper and up to 5,000 of banknote and security papers . Paper production was temporary restarted in the middle of January, but had to be shut down again two weeks later due to a lack of funds.