SISAK, March 1 (Hina) - The mediator in the sale of Sisak's ironworks to Mechel said on Saturday the owners of this Russian company had agreed in principle to alter a bank guarantee as requested by the Croatian government, which
should help restart production.
SISAK, March 1 (Hina) - The mediator in the sale of Sisak's
ironworks to Mechel said on Saturday the owners of this Russian
company had agreed in principle to alter a bank guarantee as
requested by the Croatian government, which should help restart
production. #L#
The changes are minor ones and Mechel will make them on Monday or
Tuesday so that the government at Thursday's session may pass
decisions which will put the sales contract into force and enable
Mechel to work in the ironworks, said Edin Todorovac.
He added that if there were further obstructions even after those
demands were met, Mechel would withdraw from the venture and leave
the ironworks as it cannot allow its reputation to be smeared this
way.
Todorovac said it should not be in anybody's interest to undermine
the sale as it would damage the ironworks, its 1,700 workers and
Croatian society.
He recalled the sales contract was signed on February 6 and became
effective that day but the two sides had yet to finalise it. On
February 27 Mechel proposed a EUR3.6 million bank guarantee for the
payment of six minimum salaries, he said, stressing the guarantee
was in order.
Todorovac said he told Nasibullu Mukhatdinov, the director of
Mechel's Croatian subsidiary, Conares Balkan, that the contract
had not been closed and that there were no legal grounds to start
production last night.
According to Todorovac, Mukhatdinov consulted with Mechel's owners
and decided not to heat the furnace, and was in charge to meet
workers, guests and journalists last night to tell them the furnace
was technically ready but would not be turned on until all legal
issues were resolved.
Todorovac said it was unneccessary to issue a written ban on
Mechel's entry into the ironworks as it had decided against turning
the furnace on, and that the bankruptcy administrator, who handed
the ban, knew of Mechel's decision.
Mechel is being unnecessarily smeared with accusations that it is
in the ironworks illegally and has not fulfilled its obligations,
said Todorovac. The Russian partner cannot be accused of failing to
meet its commitments while negotiations are still underway, he
said.
Mechel is not and cannot be blamed because the January salaries have
not been paid, said Todorovac, recalling that the government took
this obligation and must fulfil it.
The company's owners have said that if they cannot work in the
ironworks, they will not have to be kicked out but will leave of
their own, Todorovac said.
(hina) ha