In December 2019, a financial group AnaCap Financial Partners purchased all of the banks’ financial claims against Livar with the goal to finalize Livar’s financial restructuring and lay strong foundations for further development of the company. As of yesterday, the new financial creditor filed a motion for initiation of the creditors’ compulsory settlement procedure aiming to recapitalize Livar and reduce its financial debt. The compulsory settlement is expected to have a positive effect on suppliers, customers and employees.
Consolidation of financial debt
In the recent years, Livar’s business development has been severely limited due to its high financial debt. In the end of year 2019, the banks sold all their claims to the international financial group AnaCap Financial Partners, which is active in financial restructuring of over-indebted companies with a healthy business core.
Creditors’ compulsory settlement
On January 15, 2020, the new financial creditor filed a motion for initiation of the creditors’ compulsory settlement procedure aiming to reduce Livar’s financial debt to a sustainable level. The procedure is expected to have a positive effect on suppliers, customers and employees. The new financial creditor will enter into the ownership structure of the company and will, by increasing the company’s capital, enable Livar to focus on its core business and development of comprehensive foundry solutions empowered by centers of excellence and highly motivated teams.
The strengthening of the competitiveness
In the preceding year, Livar’s new management team has already established strong foundations for the strengthening of the competitiveness and business optimization. The sales model is focused on a clearly defined group of key customers. Thus, positive effects, including improvement of delivery performance, improvement of the quality and the reduction of lead times, are already visible. With the completion of the financial restructuring process Livar’s competitiveness will be increased and restrictions on new investments will be removed.
Dr. Rok Rozman, CEO, emphasizes: “The executive management of the company Livar assesses the entry of the financial group AnaCap Financial Partners as the new financial creditor and consolidation of the financial debt as an encouraging milestone for the successful completion of the financial restructuring of the company.”
Aiming to achieve higher productivity and added value, in the last year Livar adjusted the number of employees from 700 at the beginning of the year to the current 600 employees, mainly using soft methods of employee reduction. The target level for the year 2020 is 580 contract workers and employees, whereby the company is planning to gradually adjust its employee structure towards higher share of individual professional profiles and automatization of business processes.