August 26 (SeeNews) - Bosnia's Federation government said it has agreed to the launch of liquidation proceedings at troubled arms and explosives manufacturer Vitezit.
In the past ten years, Vitezit has received more than 15 million marka of government financing for different projects aimed at reviving its production and preventing its liquidation, but the aid has failed to produce the expected results, the government said in a statement last week.
It is therefore authorising the Federation's energy ministry to give its consent to the municipal court in Travnik where Vitezit is located to launch liquidation proceedings at the company.
The move aims to reorganise the indebted company, solve its outstanding issues with creditors, and enhance its production afterwards.