Victory Solutions buys Zelvoz for RSD 163 million – Smederevo factory sold at fifth attempt

The Board of Creditors of the bankruptcy debtor FZV Zelvoz unanimously consented to the sale of the Smederevo-based factory Zelvoz, although both bids sent in response to the latest ad were far below the estimated value, the regional portal Podunavlje.info learns.

The portal says that FZV Zelvoz in bankruptcy was sold on Thursday, May 18, for RSD 163 million and that the Belgrade-based Victory Solutions is the purchaser.

The estimated value of Zelvoz prior to the sale, as well as prior to the previous four sales in the past 20 months, was RSD 1.15 billion. This practically means that Zelvoz has been sold for about 14% of the estimated value, stated by the Bankruptcy Supervision Agency in the ad.

As Podunavlje.info reports, the offer of Victory Solutions was higher by three million than that of the Italian company Cimolai. The Italians were perceived as a serious candidate for the purchase of Zelvoz property, considering that they are already operating in one of its halls.

As added, the new owner has bought the property, but won’t take over the debts. The sum of RSD 163 will be sufficient to settle the liabilities towards the first grade payout creditors only. Among them, as the source of Podunavlje.info says, are also workers who had spent at least a year in Zelvoz on the date of the initiation of the bankruptcy proceedings. It remains to be seen how much they will get.

With this purchase, Victory Solutions has acquired around 20 hectares of land in Smederevo, which features around 95 and a half thousand square meters of halls and facilities, equipment and spare parts contained therein. Furthermore, Zelvoz subsidiaries were also subject to the sale, including Turizam i Ugostiteljstvo, which features a resort and restaurant in Jugovo, along with a thermal water pool and tennis court, among other things. The Railway Engineering School, another Zelvoz subsidiary, has a facility on the coast of the Danube, whereas the Zeleznicar Sports Society has a football stadium close to the factory, as well as several outlets in Smederevo, all of which are registered as Zelvoz property.

According to the Commercial Court, the debt that caused Zelvoz to go into bankruptcy exceeds RSD 4 billion. Current and former employees are owed RSD 760 million, and suppliers from the country and abroad are owed a total of RSD 607 million. The factory also owes RSD 104.5 million to purchasers in the name of received deposits, for jobs that remain uncompleted. Around RSD 125 million is owed to “disputed suppliers”, the Commercial Court said, and unsettled liabilities towards banks amount to RSD 76 million. The state, however, remains the biggest creditors, as the factory owes it RSD 2.7 billion – RSD 1.37 billion to the Development Fund plus another RSD 1.35 billion in taxes, contributions and other charges.

Želvoz doo Smederevo

VICTORY SOLUTIONS d.o.o. Beograd

Cimolai Italija

Želvoz d.o.o. ugostiteljstvo Smederevo

Želvoz d.o.o. zaštitna radionica Smederevo

Agencija za licenciranje stečajnih upravnika Beograd

FZV Zelvoz

Victory Solutions Belgrade

Cimolai Italy

Zelvoz Ugostiteljstvo

Zelvoz Zastitna Radionica

Bankruptcy Supervision Agency Belgrade

Zelvoz in bankruptcy

Zeleznicar Sports Society

The Railway Enginnering and Industrial School Smederevo

sale of Zelvoz

privatization of Zelvoz