Privatization Agency broke contract on sale of Putnik

The Privatization Agency of Serbia has broken the contract on sale of tourist company Putnik to American company Uniworld, because it did not deliver guarantee of 7.3 million USD. As it is written in the annunciation, the assets of Putnik will be put at disposal of the Share Fund of Serbia, which will name the temporary manager of the company. The sales contract has been broken because Uniworld did not deliver the second guarantee of 7.3 million USD, which was in effect since July 1, 2004, until the end of July 2005, in accordance with the regulations of the sales contract. The obligation of the buyer to deliver that guarantee also draws the possibility of payment of the contract fine that is set by the Privatization Agency.
In May 2003, the Belgrade tourist company Putnik was sold to Uniworld for 5.2 million USD. The buyer obliged to invest 44.3 million USD in that company until end of June 2008. American company informed the Privatization Agency on March 24, 2005, that it cancelled the contract on procurement of 70% of public assets in tourist agency Putnik from Belgrade and, on that occasion, it also returned the bought stocks. After the privatization, 231 workers of total 840 left Putnik. The reason for that, according to American company Uniworld, which is owned by a businessman of Serbian origin, Srba Ilić, was that the Agency had not cooperated in the realization of the contract and had not enable transfer of the contract when asked to, few months before.