ZAGREB, July 26 (Hina) - The Croatian government on Thursday passed a decision to initiate bankruptcy proceedings with reorganisation at Sisak's Ironworks and instructed the Croatian Privatisation Fund (HFP) to pay wages to the
company's workers up until today. Prime Minister Ivica Racan said the government had spent taxpayers' money in failed attempts to rehabilitate Sisak's Ironworks. If it continued doing so it would lead to the company's demise so the only chance for saving Ironworks, its employees' jobs and production is bankruptcy with reorganisation, he said. Economy Minister Goranko Fizulic said several strategic partners were interested in the company but that its debts would have to be cleared first. Since July 2000 the HFP gave Ironworks more than 40 million kuna (approx. $4.8 million) for salaries which the company did not use to pay minimum but 3,000-kuna monthly salaries. Fizulic said the sta
ZAGREB, July 26 (Hina) - The Croatian government on Thursday passed
a decision to initiate bankruptcy proceedings with reorganisation
at Sisak's Ironworks and instructed the Croatian Privatisation
Fund (HFP) to pay wages to the company's workers up until today.
Prime Minister Ivica Racan said the government had spent taxpayers'
money in failed attempts to rehabilitate Sisak's Ironworks. If it
continued doing so it would lead to the company's demise so the only
chance for saving Ironworks, its employees' jobs and production is
bankruptcy with reorganisation, he said.
Economy Minister Goranko Fizulic said several strategic partners
were interested in the company but that its debts would have to be
cleared first.
Since July 2000 the HFP gave Ironworks more than 40 million kuna
(approx. $4.8 million) for salaries which the company did not use to
pay minimum but 3,000-kuna monthly salaries. Fizulic said the state
had renounced all of its claims but that Ironworks' management had
failed to reach an agreement with the other creditors, which
resulted in the management's resignation.
Bankruptcy would wrap up early next year and the company would
retain most of its current workers, Fizulic said.
Energetic measures are required to save Ironworks, which has a
product and chances to compete on the world market, according to
Deputy PM Slavko Linic. He said taxpayers' money had been thrown
away on the salaries of the company's workers, and that the workers,
unions and local self-government did not want to participate in the
rehabilitation.
Linic said a Slovak company which had had similar problems was
interested in buying Sisak's Ironworks. The former management was
our biggest mistake, he added.
Labour and Social Welfare Minister Davorko Vidovic applauded the
government's decision, saying early next year Ironworks would
employ about 2,000 people, 350 less than now.
At the end of the debate, PM Racan said he would talk to
representatives of the company's workers protesting in front of the
government. They threatened getting access to the building by force
if Racan did not receive them.
(hina) ha