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Bosnia's Zitopromet enters pre-bankruptcy proceedings

Author Iskra Pavlova
Bosnia's Zitopromet enters pre-bankruptcy proceedings Debts (Author: investopedia.com) License: all rights reserved.

BANJA LUKA (Bosnia and Herzegovina), October 4 (SeeNews) – A Bosnian commercial court said it has launched pre-bankruptcy proceedings at Bijeljina-based bakery products and grain manufacturer and trader Zitopromet [BLSE:ZTPR].

The decision was taken upon a request by Zitopromet's trade unions submitted with the Bijeljina court in June over payment arrears, the court said in a statement posted on the Banja Luka website earlier this week.

Zitopromet's total debt to workers, suppliers and the state stood at 5.0 million marka ($2.8 million/2.6 million euro) at the end of May, the statement said, adding that the company's accounts have been blocked for a long period of time.

The court will hold a hearing on November 26.

Earlier this year, Zitopromet's owner Slobodan Pavlovic said he was still hoping to find a buyer for the troubled company, saying three potential investors - two form Bosnia and one from the US - were interested in the company. 

Zitopromet said earlier it closed 2018 with a net loss of 2.7 million marka, and employed 207 workers at the end of December.

Its shares last traded on the Banja Luka bourse on June 19, closing flat at 0.32 marka.

The company is based in Bijeljina in the Serb Republic, which together with the Federation forms Bosnia and Herzegovina.

(1 euro = 1.95583 marka)

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