Poland’s oldest travel bureau Orbis Travel (or PBP Orbis), currently owned by Enterprise Investors fund, filed for bankruptcy yesterday after Enterprise refused to grant the company a capital injection.“The immediate cause of this situation is the fact that the majority shareholder, Enterprise Investors, decided it could not continue to provide funding for PBP Orbis and informed the management board of this on 14 September,” reads a statement by the company.
The company cancelled all tourist events previously planned and declared that the insurance policy for some 6 million zlotys will cover all expenses connected with return of 1,049 Orbis Travel clients from abroad.
Founded in Lviv in 1920, Orbis Travel was one of Poland's biggest travel agencies, servicing more than a million clients annually.
In March 2010 PBP Orbis was sold by Orbis SA to Central European Tour Operator (owned by Enterprise Investors fund).
Orbis SA, listed hotel operator, has identified 13.64 million zlotys in potential risks related to the motion for insolvency filed by its former unit, to which Orbis had granted a 7.64 million zlotys loan and a 6 million zlotys guarantee, the firm warned in a market filing.
Orbis terminated a license agreement on the use of Orbis Travel brand by the former unit immediately after obtaining information about the insolvency motion, the firm also said.
Orbis is currently estimating the level of provisions it needs to make in relation to these risks, CFO Ireneusz Weglowski told broadcaster TVN CNBC.
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