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Leading Polish replicator seeks court protection

One of Poland’s leading replicators, GM Records Marek Grela, has filed a motion for bankruptcy with the District Court in Warsaw on 29 February with a view to protect future business activities while restructuring.

District Court-appointed administrator Dr Maciej Szadkowski is keen to point out that this procedure “does not affect the normal functioning of the company.” Orders issued by the Court have the sole objective of guaranteeing the continuity of the activity of the company, its financial liquidity and the security of supplies to its previous and new clients. “It is therefore a rehabilitation procedure and not a liquidation of GM Records,” says the administrator.

“Under no circumstances does this lead to the termination of the company’s activity and does not jeopardise delivery of products ordered,” says a letter to clients. The scope of the restructuring bankruptcy covers only “claims and interests of those entities” that have been the creditors of the company until 29 February 2008.

“It is foremost for the benefit of the clients that the motion has been filed. In line with the above, you do not have any reason for concern now or in the foreseeable future, since GM Records will be executing orders without delay and in the deadlines agreed, which is possible thanks to the filing of the bankruptcy,” the administrator concludes.

GM Records, founded by Marek Grela in 1990, has become one of the biggest multimedia and replication company in Central and Eastern Europe. Current monthly production capacity includes 20 million CDs, 15.5 million DVDs, and 2.25 million HD DVDs. It joined the HD DVD Promotion Group in June 2007.

Story filed 20.03.08

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