Elan Faces Decisive Phase of Financial Consolidation

Ljubljana, 4 July - The Slovene sports equipment manufacturer Elan faces a decisive phase of financial consolidation. The company's board last week at court filed a proposal for debt einforcement in the parent company and the subsidiary company Elan International in Austria. The owners of the company decided that the overall loses from the previous years, estimated at 8 to 9 billion tolars (39 to 44 million euros), will be covered by the equity capital, while additional losses of SIT 1 billion (4.8 million euros) will be covered by the Slovene Development Corporation (SRD) with redemption. This should create the conditions for successful debt enforcement of the company, which was completely insolvent before the Development Corporation entered it, was said at a news conference on Tuesday.