SARAJEVO (Bosnia and Herzegovina), December 11 (SeeNews) – A second auction for the sale of Bosnian bakery products and grain manufacturer and trader Zitopromet's assets failed to attract any bidders, even though the 8.3 million marka ($5.1 million/4.2 million euro) asking price was 10% lower than in the first auction, local media reported.
Investors are probably put off by the need for considerable investments in order ro launch production, news wire Indikator.ba reported on Thursday, citing the company's bankruptcy receiver, Aleksandar Vicanovic.
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Zitopromet's board of creditors will convene by the end of this week and decide on the next steps in the bankruptcy process, the report said.
Bijeljina-based Zitopromet entered bankruptcy in November 2019, following the launch of pre-bankruptcy proceedings a month earlier upon request of the company's trade unions.
The Bijeljina court that opened the bankruptcy proceedings said last year that Zitopromet had not been operational since November 2018. It had 113 registered employees at the end of 2019.
The court has also said that the company ended 2018 with a 2.7 million marka loss, while its accumulated loss reached 6.2 million marka at the end of December 2019.
Zitopromet's business assets totalled 17.3 million marka at the end of 2018, while its total liabilities stood at 4.8 million marka, including short-term debt to financial institutions, suppliers, workers and the state.
Zitopromet is based in Bijeljina in the Serb Republic, which together with the Federation forms Bosnia and Herzegovina.
(1 euro = 1.95583 marka)