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Montenegro's Uniprom threatens to cancel KAP privatisation deal - report

Montenegro's Uniprom threatens to cancel KAP privatisation deal - report License: CC0 Creative Commons

PODGORICA (Montenegro), December 7 (SeeNews) - Montenegrin company Uniprom plans to file for the annulment of the privatisation deal in which it acquired the aluminium smelter KAP, if the city government of Podgorica keeps preventing Uniprom from using a co-owned property, local media reported on Thursday.  

Uniprom plans to initiate the procedure for the cancellation of the privatisation deal, as the company is suffering losses from being unable to use the property without having any fault, Montenegrin news daily Dnevne Novine quoted Uniprom owner, Veselin Pejovic, as saying. 

"Considering that Uniprom manages the production activities and that the bankruptcy managers of KAP have no capacity to manage them, I assume that the termination of the contract and the withdrawal of Uniprom from KAP would result in the closure of the factory, large losses and layoffs," Pejovic said.

In October 2016, Pejovic said that the Podgorica city government was unlawfully using alone a plot of land jointly owned with KAP. Therefore, Uniprom has paid only 21 million euro ($24.8 million) of the price of 28 million euro agreed under the privatisation deal, and plans to pay the remainder when all property disputes with the city government are resolved, Pejovic said back then. 

State-owned KAP entered bankruptcy proceedings in 2013 and was sold by Montenegro's government to Uniprom in 2014.

($ = 0.847981 euro)

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