Bankruptcy proceedings initiated in Diners Club International

The Commercial Court of Belgrade has reached the decision on opening the bankruptcy proceedings in the financial services company Diners Club International Belgrade.

The court determined that the reasons for initiating the bankruptcy proceedings were the payment incapability and the excessive indebtedness of the company.

The Deposit Insurance Agency was appointed as the bankruptcy supervisor.

The hearing was held on June 12, 2017, and the court reached the decision determining that the bankruptcy debtor was incapable of making payments, as it was unable to meet its financial liabilities within 40 days of the due date.

Using the data from the website of the National Bank of Serbia, it was determined that the bankruptcy debtor had had its account blocked for 40 days, from May 3 till June 12, for the total amount of RSD 624,159,065.14.

The court also determined that there was a basis for initiating the bankruptcy proceedings since the company’s loss exceeded its assets, that is, that its property was worth less than its liabilities by the amount of RSD 1,949,459.00, that its claims amounted to RSD 772,277.00 and that its short-term liabilities amounted to RSD 2,886,997.00.

The request for the initiation of the bankruptcy proceedings was filed by the Diners Club International Belgrade, which had earlier reported that the reason for filing the request were excessive debts of the company.

As stated, following the completion of the transaction with the Erste Card Club and the formal takeover of the ownership of Diners, irregularities in the operations of DCIB not presented in the sales and purchase procedure were determined.

Diners Club International Beograd

Agencija za osiguranje depozita Beograd

Diners Club International Belgrade

Erste Card Club

Diners

Diners Club International bankruptcy proceedings

Erste

Deposit Insurance Agency