ZAGREB, Feb 7 (Hina) - The new owner of the Sisak Ironworks is welcome but they have not given any guarantee and so there is no room for mistakes, a high government official stated on Friday commenting on the sale of the ironworks to
the Russian Mecelj company.
ZAGREB, Feb 7 (Hina) - The new owner of the Sisak Ironworks is
welcome but they have not given any guarantee and so there is no room
for mistakes, a high government official stated on Friday
commenting on the sale of the ironworks to the Russian Mecelj
company. #L#
The Sisak Ironworks, which is bankrupt, was sold on Thursday to the
Russian Mecelj company or rather the company's power of attorney
for the sale on the world market, the Swiss Conares Trading
company.
Representatives of the metal giant obliged themselves to retain all
1,700 workers in the ironworks and announced that the ironworks
would commence production on March 1.
Sources from the government pointed out that the new owners were
welcome but because they did not offer any guarantees they had no
right to any mistakes.
The new owner will be monitored carefully and we will react to the
first financial fault, unfilled obligation or for example, any
unpaid bills to Croatian Power Industry (HEP) or Ina. That will mean
the immediate halt of supplies. If the owners should fail to meet
its obligations towards the state or its employees, we will
instigate bankruptcy proceedings, the high ranking government
official said.
He reminded that the decisions made regarding the ironworks lay in
the hands of the relevant council for the bankruptcy procedure and
the council of creditors but he mentioned that according to the
current experience if anything should go wrong, the government
would be held responsible in the end.
Economy Minister Ljubo Jurcic in particular insisted on a bank
guarantee. Jurcic was a member of the commission to resolve the
economic-social status of the Sisak Ironworks while it had been
undergoing bankruptcy procedure.
The commission last met on Tuesday, the day before the sales
contract was signed and concluded that it would not convene any
more.
The commission concluded that it was bypassed in the selection of a
strategic partner and that it would not take any responsibility for
signing any sales contract.
Even after that meeting, Minister Jurcic repeated that the only
true guarantee was a bank collateral that could be settled on first
call if any provisions of the contract were not adhered to.
Representatives of the Russian company explained that they did not
give a bank guarantee because this had no economic logic and that it
was better that the money that was to be used for a guarantee and
would remain in the bank would be put to better use to purchase raw
materials for production.
(hina) sp ms sb