Chinese interested in Kragujevac forgings factory – Sale of Zastava Kovacnica on April 24

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

Prior to the public invitation, Kovacnica’s capital was revaluated, as the last year’s one had been put ad acta at the request of the biggest creditor, the Tax Administration of Serbia, whose 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 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.

They hope in Kovacnica 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 met for organizing a tender sale, two and a half year since the initiation of the bankruptcy proceedings in Kovacnica.

The downfall of Zastava Kovacnica 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 warned the public and the competent 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.

Zastava kovačnica a.d. Kragujevac

Zastava Kovacnica in bankruptcy

sale of Zastava Kovacnica

evaluation of Zastava Kovacnica

Valentin Zahariev

forgings factory

forging

production of forginings