Dispute over 'Beko' sale - 132 million EUR amends to the Greek?

Litigation about the former textile factory "Beko" at the foot of the Kalemegdan could extract from the state budget an amazing 132 million EUR! However, the Greek investor "Lamda", which won the dispute over the problematic lot by the Fortress, ten days ago, decided to claim, instead of "penalties" from the account of the failed factory, a share of the total 24 million EUR of what it paid for the land.

The case has come before the Commercial Court in Belgrade seven years ago, when the Greek company "Lamda" bought the land on which deserted textile giant is situated. At the time of the sales, it came up that "Beko" was not the owner of one third of land in Vojvode Bojovica Street, but the Serbian Army, which was confirmed by the recent verdict.

However, the state might be found in financial problem due to one clause in the sales contract of the "Beko" factory.

- Penalties for each day of delay in handing over possession of property, as of 1 January 2008, amounts to € 55,800 a day - says Boris Tancabelić, manager of the office of "Lamda Development" in Serbia.

- However, as we are conscientious businessmen and friends of Serbia, we submitted the proposal for the court settlement. On "Beko"s account, there is still a little over 24 million EUR from our original payment. The court will decide how much money we will get and how much the Serbian Army.

Since all creditors of the textile factory have already been settled, the "Lamda Development" says that when they get their claims, the rest should be given to small shareholders, who own 40%, while 60% of the rest of the money will go back to the state.

- Greek investor is now asking for money, and it entered into possession of the land in 2007 already, when it started to use it - says Slobodan Popovic from the Association of shareholders from "Beko".

- Prior to the court decision to have the property passed to them, they have been claiming in the court that they will not seek, nor from the factory nor the country, any compensation. As soon as they got decision in their favour, they began to talk of millions.

"Beko" has been in bankruptcy for 11 years, and from the sale of its property in 2009, it got 66 million EUR. From that amount, Beko paid 17,5 million EUR in debt, with interest, which was enough for all the creditors to be paid off, and 23 million euros for court and bankruptcy costs. Then, it opened 20 million saving account in AIK Bank, and that money still exists.