Radulovic offers Galenika to banks - Bankers refuse to exchange debts for ownership stakes

Economy Minister Sasa Radulovic offered banks to convert Galenika's debt into ownership stakes in that pharmaceutical plant. As Blic reports, bankers did not accept this option, and those familiar with the issue claim that from that moment on, the word 'bankruptcy' is much too often mentioned in talks about Galenika.

In early October, Radulovic gathered the representatives of banks to which Galenika owed up to few tens of million of euros. However, his idea to rescue that Zemun-based plant by converting its debts to ownership stakes caused negative reactions from bankers.

Galenika owes about EUR 200 million, which is four times its value. According to Blic, the biggest creditor is UniCredit Banka (EUR 59 million), followed by AIK Banka (EUR 22.5 million), Societe Generale (EUR 15 million), Komercijalna Banka (EUR 12.5 million) and Erste Banka (EUR 11.5 million). Galenika also did not pay gas bills and now owes EUR 11 million to Srbijagas.