Business News

Beti Recovering a Year and a Half into Debt Restructuring

Metlika, 04 August (STA) - Beti, the Metlika-based company once best known for undergarments, appears on track to recover one year into a court-mandated debt restructuring procedure. Sales were up a fifth in the first half of the year, to EUR 6.1m, and the company posted a EUR 40,000 profit.

Sales have exceeded plans by a tenth and the profit is a success considering that the company posted a EUR 300,000 loss in the first half of last year, director Maja Čibej has told the STA.

End-year sales are projected at just shy of EUR 11m, with profit on a par with the profit for the first six months.

Beti used to be a well known consumer brand in Yugoslavia but struggled with its apparel programme after Slovenia became independent.

The company has since abandoned a variety of divisions and now produces solely polyamide yarns, exporting 97% of its output.

Many companies which enter debt restructuring slog on for a while before declaring bankruptcy.

Beti, on the other hand, received a EUR 750,000 capital injection in cash in July 2013 from a former financial director, who consequently became the sole shareholder.

"This was a rare case of recapitalisation of a company undergoing debt restructuring. Fresh capital is the best guarantee of development," Čibej said.

The company currently employs 160, a crucial major employer in Bela Krajina, a region that struggles with high unemployment.

The number of workers is expected to remain level in the coming years.

The debt restructuring programme is scheduled to end in 2017.

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