ZAGREB/SISAK, Aug 24 (Hina) - After Mechel Ironworks Sisak decided tosuspend operations and withdraw from the Sisak Ironworks company onTuesday, trustee in bankruptcy Darko Sket said he expected an urgentmeeting of representatives of
the Economy, Labour and EntrepreneurshipMinistry, the Economic and Social Council and unionists, because "itis almost impossible that the ironworks in bankruptcy continue tooperate without the assistance of the state".
ZAGREB/SISAK, Aug 24 (Hina) - After Mechel Ironworks Sisak decided to
suspend operations and withdraw from the Sisak Ironworks company on Tuesday,
trustee in bankruptcy Darko Sket said he expected an urgent meeting of
representatives of the Economy, Labour and Entrepreneurship Ministry, the
Economic and Social Council and unionists, because "it is almost impossible
that the ironworks in bankruptcy continue to operate without the assistance of
the state".Managers of Russia's Mechel on Tuesday officially informed Sket of their
decision to withdraw from the Sisak Ironworks because they were no longer able
to meet the obligations from the purchase contract, given that business losses
of the ironworks were so big that further business activities were nearly
impossible.
Sket informed the competent ministry, the Social and Economic Council
and unionists of Mechel's final decision so as to find a solution to that
problem given that the ironworks could not continue operating on its own.
The Economy Ministry said it would actively participate in the solving
of problems in Sisak Ironworks but further developments would depend on
decisions of the creditors' committee and market conditions for that sector.