Fifth auction for sale of "Savremeni dom" on June 19th – starting price is 92.7m RSD

The Privatization Agency has scheduled the fifth auction for sale of Kruševac-based lumber-industrial company "Savremeni dom" for June 19th, and the starting price of the company will be 92.7m RSD.

The deadline for submission of applications for participation in the auction is June 11th.

The Director General of "Savremeni dom", Bratislav Aranđelović, told Beta agency that the starting price of the company was the same as at the previous auction. He also said that the debts had grown in the meantime.

He added that there were some interested buyers and that that did not mean that the auction would be successful because the situation had been the same before and, yet, nobody had applied for the auction.

“Savremeni dom” stayed without electricity one month ago because of the five-month debts of 4.5m RSD.

Aranđelović said that he expected “Serbian Railways” to pay its debts to the company, and he said that the money obtained in that way would be spent on payment of electricity bills and late salaries for 112 workers.

- Although the company and the Social Economic Council of Kruševac asked EPS to introduce limited consumption instead of cutting electricity, which is an usual practice, we have not received any answer - said Aranđelović.

He reminded that the biggest problem was securing of the company's grounds, which cover the area of 30 ha.

"Savremeni dom" was offered for sale in February and April 2009, but nobody applied for participation in the auction.

"Savremeni dom" has about 5m EUR worth of debts, two thirds of which it owes to the state. Over the last few years, nearly 700 workers have left the company.