K Tech Ultra Pro goes bankrupt with debts of EUR 28 million

The Constanta Court of Law last week declared IT&C retailer K Tech Ultra Pro bankrupt. The company will be formally dissolved by October, according to Mediafax newswire. The debts run up by the firm total EUR 28 million, to 84 creditors. At the moment when the stores were closed, K Tech Ultra Pro’s stocks amounted to approximately EUR 4.1 million in value.

The next steps are the sale of assets and distribution of the obtained sums to the creditors, although funds raised from the asset sale will fall short of the outstanding liabilities. The firm’s largest creditor is Banca Romaneasca, to which K Tech owes EUR 3.5 million, and the sum generated from the sale will go mainly to the lender. Other creditors include financial institutions BRD and Bancpost.

K Tech was founded by spouses Alina and Cristian Fughina in 1997. It is controlled integrally by Milena Trading Company Ltd from the USA, administered by Cristian Fughina. Some years back it was Romania’s biggest IT&C retailer but the company was hard hit by the economic crisis. At the end of 2008, K Tech posted a turnover of EUR 68.7 million but had debts of EUR 44.7 million. In the first half of 2009, its business has decreased to approximately EUR 13.2 million.

In March 2009, UniCredit Tiriac seized the warehouse of the company in Key Logistic Center and the company’s assets in its headquarters at APACA. In May 2009, K Tech closed its stores and made all its employees redundant.

Otilia Haraga

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