Confal Struggles Amidst Financial Turmoil but Owner Remains Hopeful
Confal, renowned as the largest domestic aluminum scrap recycler, finds itself in a precarious position following a challenging period marked by court-protected restructuring initiated last summer. Despite facing setbacks such as the lack of approval for its rescue plan by key creditors and the absence of a new investor, the company's owner remains optimistic about the future.
The company, which once boasted a workforce of up to 140 employees and showed promising growth, has been hit hard by reduced demand from the automotive sector and the impacts of the COVID-19 pandemic. The restructuring process has been marred by the unanimous rejection of the proposed turnaround plan by the creditors' committee, necessitating further refinement of the plan.
Key creditors, including major entities like Slovak Gas Industry and several large commercial banks, have called for a more detailed and realistic projection of revenues and costs for the years 2024 to 2028. They also seek a more comprehensive investment plan for future development, indicating a cautious approach to new lending in the early stages of recovery.
Despite the challenges, Confal's founder and owner, Branislav Petro, has taken significant steps to diversify the company's customer base, streamline operations, and adopt more secure contract models to mitigate financial risks. Petro's commitment to finding a new investor remains unwavering, with ongoing negotiations reportedly taking place with more than ten potential investors.
