Receiving order issued against Zastava Automobili – The disappearance of the company which motorized former Yugoslavia

The Commercial Court of Kragujevac issued a receiving order against Zastava Automobili AD due to insolvency and indebtedness on July 21. The company owes more than RSD 60 billion, and the account has been blocked for 701 days for over RSD 100 million. The bankruptcy procedure has been initiated at the proposal of the Ministry of Economy.

Zastava Automobili is, as Danas writes, the legal successor of Zastava's former Fabrika Automobila, whose factories and halls were taken over by Fiat in 2010.

The first meeting of creditors has been scheduled for September 20. The factory currently has three workers, and in 1989 it had 13,5000 and it produced 220,000 vehicles.

Among them, the most popular vehicles were Zastava 750, which practically motorized former Yugoslavia, Zastava 101 and Yugo, which reached the American market in the second half of the 1980s, where more than 142,000 of these vehicles were sold.

The Ministry of Economy says that the company's account has been blocked since February 11, 2015, and that Zastava Automobili's debt on December 31, 2014, amounted to nearly RSD 53 billion, whereas the blockage of the company's account on July 12 amounted to RSD 114 million.

Zastava Automobili inherited its enormous debt from the former Fabrika Automobila, whereas Fiat took over the factories and production facilities as well as the share of the state of Serbia in the joint company with the Italians. The competent authorities at the Commercial Court, however, say that Zastava Automobili has at its disposal the monetary capital and property of a much higher value, which is why it has been banned from using it.

Zastava automobili a.d. Kragujevac

Privredni sud Kragujevac

FCA Srbija Kragujevac

Ministarstvo privrede Republike Srbije

Zastava Automobili

Fabrika Automobila Zastava

Commercial Court of Kragujevac

Fiat

FCA Serbia

Zastava bankruptcy

zastava 750

zastava 101

yugo