Diners Club International Belgrade submits request for initiation of bankruptcy proceedings
As stated, following the completion of the transaction and formal takeover by Erste Card Club d.o.o. (ECC), irregularities in DCIB operations, which had not been presented in the sales and purchase and due diligence procedures, were determined. They pertain to evasion of obligations towards the creditors and incorrect information about claims towards the clients. The amount of irregularities in financial reports is very significant and additional investments in settling the said debts would not be economically justified.
For this reason, regardless of the considerable investments made by ECC so far and the loss thereof, the decision was made to submit a request for the initiation of bankruptcy proceedings. Any responsible company would make the same move under such circumstances, the press release says.
Alternative options for continued activities of Diners Club being considered intensively
As stated, all the competent institutions have been communicating with each other in the past days, including the National Bank of Serbia and the provider of the franchise, the American company Diners Club International (DCI), and alternative solutions enabling the continuation of Diners Club activities in the market of Serbia are being considered intensively.
This is a complex procedure which requires a detailed analysis and thorough preparation, as well as consent by all the parties involved. The final decision is therefore expected in the next few weeks, and, the public will be notified of the decision in a transparent manner immediately after it is reached, it was pointed out.
Fees to be canceled, funds to be repaid
Diners Club Serbia has reached the decision that the card usage fees shall not be charged from May 1 till the re-establishment of the system. All monthly and and annual fees charged to the users before that date will be canceled and the amounts already paid will be returned.
The announcement directed at the users also says that “all users who paid the annual fee for the 12-month period before May 1, 2017, will have a proportioned part of the fee canceled in line with the said decision, and the change will be declared in the next debt report”.
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