FAM Krusevac gets a debt write-off of EUR 103 mil – Two-year grace period for the return of the remaining 22 millions

The Commercial Court has adopted a Pre-Packaged Reorganization Plan for Fabrika Maziva (FAM) from Krusevac, through which its debt of EUR 103 mil has been written off. Fabrika Maziva has avoided having to enter the bankruptcy proceedings and will have to return EUR 22 mil to its commercial creditors, with a two-year grace period.

- The preparation of the PPRP had been worked on since July last year till Friday, when it was adopted. FAM owed EUR 125 mil, although those debts were made by other companies owned by Milo Djuraskovic. We have managed to bring the debt down to EUR 22 mil. The state has written off 14 millions, and the total value of the write-off is EUR 103 mil – emphasizes FAM.

Milo Djuraskovic bought FAM in 2007 for EUR 25 mil. Four years later, he was arrested under suspicion of draining the company of EUR 32 mil, while making a debt in a significantly larger amount.

FAM made debts with business banks, and the money gained was being directly transferred to the account of a company belonging to Djuraskovic's NIBENS Group.

FAM currently employs 227 people, whose annual salary is over RSD 60,000, which is far above the Krusevac average. After adopting the PPR, the company isn't planning to reduce the number of employees, but emphasizes that the assets meant for the return of the debt will be acquired though more rational business activities and an increase in production.

FAM currently covers 25% of the motor and industrial lubricants market in Serbia and is exporting to the countries of the region.