ZAGREB, July 1 (Hina) - The Croatian Government on Thursday adopted a decision on the payment of debts to contract farmers of the Virovitica Sugar Factory, which binds the Dutch company Cosun to pay a debt worth about US$9.45 million
to Virovitica Sugar Factory contract farmers within 15 days from the signing of an agreement with the Croatian Privatisation Fund (HFP). This decision was adopted at today's closed session of the Croatian Government. Before the session, Agriculture Minister Ivan Djurkic told reporters the agreement between the HFP and Cosun, signed on December 23 last year, could not provide a solution for the payment of debts to the contract farmers. According to amendments to the agreement, which were signed last night at the Agriculture Ministry, the HFP will offer Cosun an additional package of 27 per cent of shares of the Virovitica Sugar Factor
ZAGREB, July 1 (Hina) - The Croatian Government on Thursday adopted
a decision on the payment of debts to contract farmers of the
Virovitica Sugar Factory, which binds the Dutch company Cosun to
pay a debt worth about US$9.45 million to Virovitica Sugar Factory
contract farmers within 15 days from the signing of an agreement
with the Croatian Privatisation Fund (HFP).
This decision was adopted at today's closed session of the Croatian
Government. Before the session, Agriculture Minister Ivan Djurkic
told reporters the agreement between the HFP and Cosun, signed on
December 23 last year, could not provide a solution for the payment
of debts to the contract farmers.
According to amendments to the agreement, which were signed last
night at the Agriculture Ministry, the HFP will offer Cosun an
additional package of 27 per cent of shares of the Virovitica Sugar
Factory worth about US$274,000. Cosun will pay this amount directly
on HFP's account in foreign currency.
Djurkic said Cosun was obligated to secure funds necessary for the
payment of debts to the contract farmers, via its sister company
Cosun Sugar Zagreb, within 15 days.
The third item refers to the remaining part of money from the
initial agreement, amounting to US$17.39 million, which Cosun will
pay on the account of the Virovitica Sugar Factory and which will be
used for the factory's financial servicing.
Asked about Cosun's total ownership share in the Virovitica
factory, Djurkic could not state the exact percentage, adding the
share would be "very big".
(hina) rml
,