Inapa CEO and board resign after company declares bankruptcy

Portuguese paper distribution company Inapa, which ran out of money last week after a €12 million cashflow problem at its German subsidiary, has declared insolvency.

According to ECO online news this morning, the company’s CEO, Frederico Lupi announced his resignation and the board resigned after announcing insolvency over the weekend.

Meanwhile, the Portuguese stock market and securities commission, CMVM has suspended trading of the company’s shares.

Inapa issued a statement which states that the decision was taken taking into account the “immediate impacts of Inapa Deutschland declaring insolvency.

Inapa Deutschland faced a short-term cashflow problem of €12 million for which it was unable to find a financial solution within the period established under German law.

The company’s board tried to fund a solution with its creditors and shareholders, in particular the Portuguese public company Parpública that holds around 45% of Inapa’s capital, but was not able to resolve the lack of cashflow.

Founded in 1965, the Inapa Group has almost 1,500 employees and operates in 10 countries. Its main shareholders are Parpública, with 44.89%, Nova Expressão, with 10%, and Novo Banco with 6.55%.

The company suffered losses of €8 million in 2023, compared to profits of €17.8 million in 2022 according to the company’s financial results, but sales fell 20% that year to €968.7 million.