EuCO applies for sanitation

The compensation acquisition company is in a difficult situation. Through sanitation it wants to protect itself from creditors and survive.  

Last Friday, October 14, was the deadline for the partial redemption of bonds issued by the European Compensation Center (EuCo). They are worth PLN 18 million. The company was supposed to redeem a portion of them worth PLN 1.44 million and pay interest. It failed to fulfill this obligation. Instead, it filed an application to open sanitation proceedings. It explains that this procedure is intended to help it get out of trouble, continue its operations and settle its debts.

The company has been in business since 2004. It deals with obtaining compensation on behalf of accident victims. In recent years, its financial condition has deteriorated significantly. The company blames this on pandemonium. It explains that the reduction in interpersonal contacts has caused the number of cases it handles to drop significantly. In addition, the activities of courts and offices were paralyzed.  As a result, cases began to pile up. In addition, insurers take much longer to process such cases. One also has to wait a long time for compensation payments.

Currently, EuCo is valued at only PLN 5 million. The company’s capitalization has fallen by 75 percent over the year. In the first half of this year, its revenues amounted to PLN 17.5 million. This is 30 percent less than a year earlier. Profit was at PLN 0.89 million, down 70 percent from a year ago. In addition, the company has only PLN 1.7 million in cash and cash equivalents. A year ago it was more than PLN 10 million.

Source: https://www.pb.pl/euco-chce-sanacji-1166724