Brewery’s assets seized after failing to pay off loan

TIRANA, June 6 – A decision by Raiffesen Bank to seize the assets of a local brewery in Albania following its inability to pay off a large loan has sparked reactions among business representatives who oppose the drastic measure taken by the country’s biggest commercial bank. The owners of Birra Norga, based in the southern city of Vlora, said the bank acted without a court decision and with the intention to ruin the beer company which has an important share in the Albanian market. Dozens of workers have protested the bank’s decision in front of its headquarters. Representatives of business associations say banks should be more understanding with businesses at this time of global crisis, calling for a renewed deal for the beer factory. The brewery’s owners claim they have paid 8 million Euros to the bank during the past four years at a time when the deadline was six years. Reacting to the owners’ claims, Raiffeisen Bank announced the sequestration of the properties of A&B Group, as the owners of this company owe the bank more than 11 million Euros. “Not only has the A&B Group not paid their obligations since more than one year now, they have also not accepted any form of cooperation with the bank and have instead simply made empty promises to pay,” said the bank in a statement. Raiffeisen Bank said it offered A&B Group’s owners several options including restructurings to reflect the company’s difficulties, and a financial analysis by an external international evaluator at the bank’s own cost. “Several weeks ago, we offered the company together a grace period for paying the loans and the waving of all the penalties — this offer was rejected as well. We have done all of the above with the aim of saving the company, securing the jobs of its employees, collecting the money A&B Group owes to the bank, and leaving the company in a healthy state for its the owners. However, every effort of ours has been rejected by the owners. At this moment we are forced to proceed with the legal steps.” The bank says has had the executive order/court decisions from the Tirana Court since October 2010 started the bailiff procedures in December 2010. The company appealed this decision. A few days ago, the bank received the final decision from the Court of Appeals allowing it to continue with bailiff procedures. Raiffeisen Bank in Albania has decided to pay the May salaries of the employees who are still on the payroll of A&B Group. “We would like to stress that the current situation at A&B Group has been brought about by the company’s management decisions, including the rejections of the offers the bank had made to A&B Group’s owners.”