Tender for the privatization of Zastava Kovacnica postponed

(Photo: PHOTOCREO Michal Bednarek/shutterstock.com)

The tender documentation was bought within the set deadline by three companies from the same industry – one from Serbia, one from the Czech Republic and one from Bosnia and Herzegovina.

The starting price of the Kragujevac forging plant is EUR 2.65 million, which is 50% of its estimated value (EUR 5.3 million). Zastava Kovacnica will be offered to the companies which have bought the tender documentations as a legal entity, that is, as a complete factory, not in parts, as companies in bankruptcy are usually sold.

Unlike most similar cases, in which the company’s bankruptcy automatically means the cessation of production and all business activities and employee layoffs, followed by the drawing out of the process of deciding on the company’s future (mostly due to the lingering of the remaining property), Zastava Kovacnica fared better.

It kept providing local and foreign partners with products even after the bankruptcy, which was caused by the failure of the previous privatization, due to which the decision was brought this February to end the bankruptcy proceedings by going into liquidation.