In recent months, due to the lack of approval of financial statements by the law, the majority of credit institutions, frightened by the lack of information, had suspended their credit lines totaling several million euros. In early September, just one day before passing over the majority of shares, the former shareholders approved the financial statements which reported significant losses for 2013 for both companies.
All banks were immediately convened by the new owners and were assured of the route they had intended to take – a clearer and more transparent approach on the business situation and on its accounts. In order to ensure a smooth restart, this was a necessary process to regain the opening of credit lines, still within the limits previously granted and never revoked.
Only a few institutions have responded positively and the situation did not allow to anticipate the invoices even thought there was the availability to do so and a high credit quality. The lack of credit has prevented the payment of all suppliers and particularly those strategic for the business. At this point the situation rapidly degenerated, and production was stopped, because of the lack of payments no longer allowed Giusti to have supplies of raw material and therefore made it unable to even deliver its end products, with the risk of significant criminal penalties.
With the intention of preserving all job positions and values of business continuity a lease will be stipulated during the course of today for both organizations, with which all workers and the restart of production will be ensured. The timing of the intervention during a moment of crisis is often represented as one of the success factors of this initiative.
The Pro-Gest Group, based in Istrana-Treviso, Italy, produces paper and corrugated board products.
