Court approved restructuring plan of Váhostav company

Judge Katarína Bartalská has approved the restructuring plan of the construction company Váhostav-SK, the Dennik N newspaper reported on its website on Monday, citing two sources close to judicial bodies. The verdict will become official only after it has been published in the business bulletin. Váhostav has accumulated debts of €136 million and plans to cover only 18% of the sums owed to smaller creditors; the rest is to be covered from the taxpayers' money. One of its owners, Juraj Široký has close links to the governing Smer party. The judge Katarína Bartalská was obliged to decide whether to okay the restructuring plan, which involves cancelling over 80 percent of the company's debts towards its small creditors, or to send the firm into bankruptcy. She has refused to make any comments on the case until the decision is published in the Slovak Business Bulletin in compliance with legislation on bankruptcy and restructuring.