The Commercial Court in Belgrade has ruled that official bankruptcy procedures in Diners Club International Belgrade should commence. The main reasons for the ruling were the company’s inability to settle its liabilities and over-Indebtedness.
The Deposit Insurance Agency was named as an official bankruptcy administrator. The first court hearing regarding the Diners’ case took place on 12th June this year, and the court ruled that Diners was incapable of settling its debts and liabilities within 40 days since the start of the liability. Based on the data presented at the website of the National Bank of Serbia, the bank accounts of Diners have been frozen more than 40 days.
The court has also ascertained that there is the basis for declaring bankruptcy considering that the company’s losses exceeded the value of its assets. Only in short-term liabilities, the company owes over 2 billion dinars.
It was Diners Club International Belgrade which asked for the bankruptcy procedure to be launched. The company’s financial woes only surfaced after Diners was officially acquired by Erste Card Club, and the company’s financial troubles were not presented to the new owner prior to the acquisition.
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