Kruševac-based Textile company "Zvezda" for sale at starting price of 13.27m RSD

The Privatization Agency announced the invitation on Friday (October 30, 2009) for the fifth auction for sale of Kruševac-based Textile company "Zvezda", at which that company will be offered for sale at the starting price of 13.27m RSD, which is 6.5 times less than at the first auction.

According to the data included in the public invitation for participation in the auction that is scheduled for December 11th, the interested parties will bid for the smaller price than at the first auction, which was held in December 2008, when the starting price was 86.97m RSD.

The starting price is in accordance with the new appraisal of capital, which was done, according to the Privatization Agency's explanation, on the basis of corrected accounting value, so that it now amounts to about 66m RSD instead of initial 366m RSD.

It is the method that is used in the situations when the company had unsuccessful auctions in the past.

- That company could have entered the liquidation process after three unsuccessful auctions. However, it is taken in account that the company employs 200 people, and that it operates and produces - said the people from the Privatization Agency.

Speaking of the current situation, the Director General, Živan Nikolić, told "Beta" agency that the company had contracted jobs with local buyers - Niš-based company "Edi" and Pančevo-based "MGS-TEX".

- Volume of production was reduced in July, when the cooperation with foreign buyers was discontinued. That happened as the consequence of the economic crisis - said Nikolić.

Kruševac's textile factory has recently obtained 2.5m RSD worth of subsidized loan for capital funds from the Ministry of Economy and Regional Development of Serbia.

Also, with the Privatization Agency's approval, two outlets in Ćuprija and Lučani have been sold.

The company now has nine outlets, four of which are in Kruševac, and there is one in Kraljevo, Brus and Aleksandrovac, while the stores in Ćićevac and Despotovac are closed.