SDH offers troubled MLM to Maribor municipality - report

SDH is ready to provide а loan of up to 5 million euro ($5.5 million) to the Maribor municipality for the continued operation of MLM and to reschedule the repayment of its existing debt, public broadcaster RTV reported on Monday, citing a non-binding offer from SDH.

The municipality will be able to maintain the operation of the company, keep jobs, and acquire indirect ownership of the land along the Drava River, on which MLM currently operates, SDH said.

Maribor municipality is expected to answer by June 10, RTV reported.

Last week, Maribor municipality councilors expressed their dissatisfaction with SDH's efforts to resolve issues at MLM, urging the state to support the company.

MLM has been facing difficulties stemming from the Covid-19 pandemic, supply chain disruptions, the energy crisis, and declining car production in Europe. The company has been granted a total of 13.3 million euro in direct state aid, disbursed in installments since 2009, with the most recent installment provided in 2020.

In September 2023, the Slovenian government said it could no longer extend aid to MLM and the company needed a new owner to avoid bankruptcy.

($ = 0.91742 euro)