Prague/Karlovy Vary - Karlovarský porcelán, a china producer based in Karlovy Vary, and Sklo Bohemia, a glassmaker in Světlá nad Sázavou, yesterday received protection from creditors at the Prague Municipal Court.

The court appointed the company Pro-Konkurs as the insolvency administrator for Karlovarský porcelán. Creditors now have 40 days to submit their claims.

The two firms have been in insolvency proceedings, triggered by a shortage of cash, since 22 September. They are both part of Bohemia Crystalex Trading (BCT), one of the world's largest glass manufacturers with more than 5,000 employees. Sklárny Kavalier Sázava and Sklárny Bohemia Poděbrady are also members of the BCT group.

Over 1,500 may lose jobs

The glass factories in Světlá nad Sázavou and Poděbrady yesterday informed their trade unions about plans to lay off up to 1,555 employees, including 1,108 in Světlá and 447 in Poděbrady.

Corporations in the Czech Republic are obliged by law to inform about planned staff reductions in advance. Since the management of Sklo Bohemia is not able to quote a precise number of redundancies, it published figures for the worst-case scenario.

In mid-September, the ČEZ power producer cut off BCT's electricity supplies for one hour to remind the group it owes ČEZ hundreds of millions of crowns in unpaid bills.

Accounts frozen

The news site Českénoviny.cz has reported that Karlovarský porcelán is continuing production. Electricity and natural gas suppliers have agreed to extend supplies at least until 20 October.

However, the company's bank accounts have been frozen and the 1,540 employees have received only 70 percent of their wages.

Karlovarský porcelán is the Czech Republic's largest producer of porcelain. Its oldest factory was established in 1794 in Klášterec.