Bulgaria’s Litex Motors, the owner and operator of the sole car assembly plant in the country, has filed for bankruptcy last month, reports in Bulgarian media said on March 28.
Founded in 2008, the company struck an agreement to assemble cars from kits provided by China’s Great Wall Motors. The plant near Lovech in central Bulgaria began operations in 2011, but suspended work in January 2016.
Business news website Investor.bg reported that, at the time, there were claims that the cars assembled by Litex Motors did not meet EU safety and environmental standards, although the company denied such allegations.
Litex Motors was one of the largest debtors of the now-bankrupt Corporate Commercial Bank, Bulgaria’s fourth-largest lender by assets, which was declared insolvent in 2014. According to the media reports, Litex Motors owed 76 million leva, or about 38.9 million euro, to the bank.
Litex Motors’ bankruptcy filing in late-February was reportedly followed by a second bankruptcy filing made by one of its largest creditors, insurer Bulstrad, owned by Vienna Insurance Group, the reports said.
(Photo: Litex Motors/greatwall.bg)