"Simpo" signed agreements with banks, account blockade to be terminated

(Photo: simpo.rs)

The agreement is signed with the possibility to extend its validity by 31 December this year.

- According to the agreement, banks will withdraw an account blockade of "Simpo" and its related companies. The same will be done by Tax Administration after the Government’s decision – specifies Disic.

As he continues, the debt settlement agreement is the first big step towards "Simpo" consolidation that would provide commencement of production in September.

The Agreement will be valid when verified by Serbian Government, which is expected in the weeks to come. At the same time process of "Simpo’s" debt conversion will be transformed into permanent stake of Serbian Government, therefore, the Government will become its majority shareholder – said Disic.

The Debt settlement agreement has been signed between Postal Savings Bank, Bank Intesa, Hypo Alpe Adria, Serbian Bank, Universal Bank. NLB Inter Finance AG Zurich, New Agrobank Belgrade on one hand and "Simpo" company and its related entities, as debtors, on the other hand.

Credit rates, interest rates and other bank payments are valued at EUR 11 million, specifies Disic.

During the period of debt settlement, as he explains, "Simpo" will arrange certain grace period and new conditions on credit repayment with each bank, with intermediation of some independent consultant companies.

- Our plan of business consolidation includes gradual use of full capacities by the end of the year, which means that sale of goods in December is EUR 5 million – says Disic.

The debt for unpaid taxes and contributions that will be taken over by the Government, when it is a majority shareholder, is RSD 5.7 billion.

"Simpo" company employs 4,413 people.