Portuguese paper distributor Inapa filed for insolvency with the Portuguese courts in the summer of 2024. This decision was precipitated by the bankruptcy of its German subsidiary, Inapa Deutschland, announced on July 22, 2024. The subsidiary suffered a cash deficit of 12 million euros, an amount that management was unable to make up, despite attempts to refinance with the support of shareholders, including Parpublica, the state-owned company that owns 45% of Inapa.
The failure of negotiations with creditors and the inability to stabilize the German subsidiary's financial situation led to a rapid deterioration in the Group as a whole. As a direct consequence of this failure, parent company Inapa Investimentis, Participacoes e Gestao (Inapa IPG) had to file for insolvency.
Founded in 1965, Inapa has a long history in paper distribution, with a presence in some ten countries and a workforce of 1,500. However, the Group's financial performance has deteriorated in recent years. In 2023, Inapa posted net losses of ?8 million, a sharp drop on the ?17.8 million profit achieved in 2022. This decline in profitability, accentuated by structural difficulties in the paper industry, has contributed to the current situation.
Takeover proposals: dotted-line assets
Insolvency administrator Bruno da Costa Pereira received bids for certain segments of the group, but no overall proposal for all assets. Four separate bids were submitted, targeting mainly the divisions based in Portugal and France, while subsidiaries in Germany, Spain, Belgium and Turkey did not attract any concrete interest. This situation raises concerns about the viability of these subsidiaries and possible job losses in the short term.
One notable point concerns the proposed acquisition of subsidiary Inapa Packaging SAS by Next Pack SAS for 20 million euros. However, this offer is subject to approval by the French competition authorities. The takeover would also target French packaging subsidiaries such as SEMAQ and Embaltec SAS.
Next steps: uncertainties and hopes
The creditors' meeting scheduled for September 27, 2024 should clarify the future direction of the Group. Although proposals have been submitted for some subsidiaries, the fate of many divisions remains uncertain. Creditors will have to decide whether to accept the current offers or to explore other options for maximizing the company's assets.
