LJUBLJANA (Slovenia), February 2 (SeeNews) – Croatia's government said on Thursday it has approved a deal under which Slovenia will pay 7 million euro ($7.6 million) to settle, out of court, the case over the outstanding debt owed by Slovenian car parts maker Cimos Group to a Croatian bank.
Cimos owes money to the Croatian agency for deposit insurance and bank resolution (DAB) after almost 15 years ago the company took out a loan from Rijecka banka, which later ceased to exist. DAB, which took over the claims of the failed bank, has lodged a lawsuit demanding compensation from Cimos.
Slovenia's 'bad bank', DUTB, has 15 days to pay its Croatian peer, DAB, 7 million euro in an out-of-court settlement of the case. In return, DAB will withdraw its lawsuit, the Croatian government said in a press release following a regular weekly session.
The deal, agreed to on Monday, is crucial for Slovenia in view of an agreement concluded earlier to sell a 92% stake in Cimos to Italy's TCH Cogeme, a unit of investment firm Palladio Holding Group.
"This will save 4,000 jobs, of which 1,200 are in Croatia", Croatia's state property minister Goran Maric said.
Last week, Slovenian media reported that the Italians have decided to withdraw from the purchase of Cimos after Croatia rejected Slovenia's third offer for an out-of-court settlement. Siol.net reported at the time that the Italians were not prepared to wait any longer as the deadline by which all conditions for the acquisition of the stake had to be met had expired.
The Italian buyer, however, is yet to say whether it finds the new deal between Slovenia and Croatia acceptable.
Privatisation is the last step in a long process towards Cimos' stabilisation, DUTB noted in October. The Koper-headquartered group manufactures mainly turbo compressor and turbine housings, power train components, chassis and car-body parts. Cimos has a production footprint in four countries across Southeast Europe.
($=0.925143 euro)