Chinese company interested in Zastava Kovacnica

The new sale of the bankrupt Zastava Kovacnica has been scheduled for April 24. The tender documentation has been bought, as the Danas daily learns, by two companies, a local one and a Chinese one. The starting price will be tantamount to 50% of the new estimated value of the company, that is, slightly above EUR 3.4 million.

Prior to the public invitation, Kovacnica’s capital was re-evaluated, as the last year’s one had been put ad acta at the request of the biggest creditor, the Tax Administration of Serbia, which claims amount to RSD 320 million.

The value of Kovacnica as a legal entity, according to the new estimate, is RSD 848.85 million (EUR 6.75 million), which is EUR 1.1 million more than the amount that the Tax Administration failed to accept last year. The deadline for the creditor’s complaints is April 21, and neither the Tax Administration nor other creditors have disputed the estimate so far.

Kovacnica hopes that none of the creditors will have any complaints over the estimated value of the company this time, whereas the Commercial Court of Kragujevac claims that the conditions have finally been met for selling the company, two and a half year since the initiation of the bankruptcy proceedings in Kovacnica.

The downfall of Zastava Kovacnica, which mainly produces forgings, started following the privatization of the company, which was bought in 2005 by Bulgarian businessman Valentin Zahariev. The factory’s union, the workers and other minority stakeholders had been warning the public and the state institutions for years that Zahariev was ruining Kovacnica by moving the profit to Bulgaria and leaving the Kragujevac company in debt, but the state failed to react.

(eKapija, 06.04.2017)

http://www.ekapija.com/website/en/page/1722669/Chinese-interested-in-Kragujevac-forgings-factory-Sale-of-Zastava-Kovacnica-on-April-24

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