AUDITING COURT DECLARES MADEIRA TECNOPOLO AS IN TECHNICAL BANKRUPTCY

An audit at the Madeira Scientific and Technological Pole, Madeira Tecnopolo, dictated that this company is in a situation of “technical bankruptcy”.
The conclusion is that the Court of Auditors carried out an analysis of the management of the accounts receivable and payable by Madeira Tecnopolo, S.A. (MT, S.A.), in the period 2013-2016, and its repercussions on their level of indebtedness.
The TdC concluded that “MT, SA is in a situation of technical bankruptcy, presenting between 2013 and 2016 a negative equity of more than 12.7 million euros, which translates into the inability to meet its short-term financial commitments , medium and long term, to bear the operating costs, and on a continuing need for external financing “; that “the internal control system implemented not only did not prevent the increase in customer debts but showed a poor efficiency in the recovery of outstanding amounts which, on 12/31/2016, amounted to € 1.1 million of which 91, 6% were in arrears “, that the MT did not make timely due to the coercive collection of the amounts arising from two payment agreements, concluded at the end of the first four months of 2015, that were never met by the clients Expedita and Gestools, in the total amount 72 315.83 €. In 2016, MT, SA assumed the uncollectability of non-prescribed debts of Liberal and University of Madeira customers, in the amount of € 15 584.77 and € 16 277.60, respectively, which led to the non-collection of that revenue “and “at the end of 2016, the value of debt to Suppliers reached a total amount of 1.2 million euros (8.9% more than in 2015), 83% of which (979.7 thousand euros) related to supplies of electricity and water. In addition to this amount, there is an unrecognized debt to the Municipality of Funchal in the total amount of € 39 003.29 related to water supply and waste treatment from January to December 2008. ”
In a report published on the page of the CoR, the Regional Government is advised to consider the conditions of continuity of the company, in particular by considering the current business model (balance between income and expenses), accumulated liabilities and equity .
Already to the Board of Directors of the company, the TDC recommends that, regardless of the strategic guidelines that the shareholders may define, it prevents the increase of customer debts and triggers, without delay, the credit recovery measures that are most appropriate; define the criteria, procedures and mechanisms for controlling clients’ debt, and establish uniform procedures for non-compliance.