SIF Transilvania’s tourism division, Transilvania Hotels & Travel, has entered insolvency at its own request, after three creditors, including Turism Felix and THR Marea Neagra—where SIF Transilvania is also the majority shareholder—requested the payment of debts in court.
In March, the general manager, Marius Zamfir, stated that insolvency for Transilvania Hotels & Travel was out of the question, even though the company had to pay damages of over EUR 1 million to ten managers hired two years ago to restructure Transilvania Hotels & Travel and dismissed after only a few months.
Last year, the company’s turnover increased by over 50%, but losses nearly doubled to RON 3.2 million.
The third creditor, Sotiroulis George Petre, appears among the appellants in the labor dispute opened in March 2016 by the group of managers against Transilvania Hotels & Travel (Sigma Hotel Management).
The ten managers hired two years ago to restructure Transilvania Hotels & Travel, the tourism division of SIF Transilvania, and dismissed after only a few months, won their lawsuits against the company, blocking its accounts. These managers stated that Transilvania Hotels & Travel must pay them, collectively, salaries and compensation exceeding EUR 1 million.
After two years, the ten managers won the collective lawsuit filed against Transilvania Hotels & Travel, and several of them, including Mihai Zamfir, George Secareanu, and Mircea Draghici, also won individual cases at the Bucharest Court of Appeal. Mihai Zamfir even blocked Transilvania Hotels & Travel’s accounts, seeking the company’s foreclosure, and Draghici and Secareanu were set to request the same.
The largest hotel owner in Romania, SIF Transilvania, with a portfolio of nearly 40 units and THR Marea Neagra, with over 20 hotels on the coast, decided more than two years ago that its travel agency, Transilvania Hotels & Travel, established in 2003, should transform into a hotel management firm to administer the assets.
Transilvania Hotels & Travel is the tour operator for the tourism companies in SIF Transilvania’s portfolio. The agency primarily promotes the offers of these companies for the hotel and public catering units within SIF Transilvania’s tourism portfolio.
According to data published on the Ministry of Finance website, Transilvania Hotels & Travel’s loss nearly doubled last year to RON 3.52 million, compared to a negative result of RON 1.9 million in 2015. The net turnover increased by 55%, from RON 16 million in 2015 to RON 24.9 million.
Source: Economica
Frequently Asked Questions
Why did Transilvania Hotels & Travel enter insolvency?
The company filed for insolvency following debt payment requests from creditors and a legal defeat requiring it to pay over €1 million to former managers.
Who are the main creditors in this case?
The primary creditors include Turism Felix, THR Marea Neagra (both part of SIF Transilvania), and Sotiroulis George Petre.
What were the company’s financial results before insolvency?
Despite a 55% increase in turnover to 24.9 million RON, the company’s losses nearly doubled to 3.52 million RON in the last fiscal year.