PRIVREDNA BANK ZAGREB SELLS ELAN TO SLOVENE GOVERNMENT AGENCY

OTOCEC OB KRKI, March 17 (Hina) - Privredna Bank Zagreb and the Croatian Government's Savings Investments Protection Agency on Friday sold the majority stock of the Elan sports factory to the Slovene Government's agency "Slovenska razvojna druzba". The Slovene agency purchased 77.3 per cent of Elan's shares, 85.7 per cent of Elan Commerce Zagreb shares for 14 million German marks and Elan's debts to the Privredna Bank Zagreb of 49.2 million marks. Present at the signing of the contract in Otocac ob Krki, where the plant is located, was first deputy to Croatian prime Minister, Goran Granic, and Economy Minister Goranko Fizulic, as well as Slovene economy Minister Tea Petrin and Labour and Social welfare Minister Anton Rop. The Slovene officials announced development projects for the restructuring and rehabilitation of Elan to breathe life into its former global reputation. Elan's business has been through financial difficulties for a while now. At the end of January the company's debts amounted to about DM110 million. Officials at the Privredna bank Zagreb, which became the owner of Elan in May 1992, said that the sale of shares and payment of debts finally solved the bank's problems accumulated for a number of years, including the as yet unresolved bankruptcy proceedings for Elan and the loss in a number of bad skiing industry seasons. (hina) lml jn