Budimka to be auctioned in April?

More than twenty foreign and local companies are interested in the purchase of the Pozega-based company Budimka and they will reveal their intentions in April, when the sales ad is expected to be placed, Danas reports.

The list of creditors includes business entities, workers, banks, funds, public enterprises and state institutions, which are owed around EUR 12 million and which will be able to collect a part of their claims from the sale, in line with the defined priorities.

Danas reports that it has been determined that Budimka has a large capital – around 30 hectares of designated land, around 100,000 m2 of production facilities for the processing of fruit, vegetables and meat, cooling plants, a farm, as well as 15 hectares of free areas, of which around 10 under apple plantations. Still, the sale has not yet been prepared, because the Republic Geodetic Authority is yet to issue several real estate and property folios.

The first sale, which should be carried out through a bid collection or a discount sale, should be advertised in April 2018.

– If everything were included, the factory's capital would be worth around EUR 20 million, but it should be kept in mind that, following the bankruptcy, the court determined that Budimka owed EUR 12 million to creditors, including the interest. The value of Budimka's capital will most probably be estimated at around EUR 8 million, but the initial sales price will be halved to around EUR 4 million, in line with the law, due to the bankruptcy. If the company is sold for this amount, 30% of the creditors' debt will be paid – explains Djordje Stevanovic, member of the Council of Creditors.

He adds that EUR 4 million, given the circumstances, would be a good price for the purchaser, but not for the seller and the creditors.

A successful sale of Budimka, as Stevanovic says, would open new business opportunities, including the employment of 100 people initially, with a view to hiring another 200. On the other hand, the subcontractors would be given an opportunity to continue producing fruit and vegetables, whereas various companies could offer their services.

Budimka doo Požega

Djordje Stevanovic

sale of Budimka

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Budimka bankruptcy

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