BELGRADE (Serbia), September 4 (SeeNews) – Serbia said it has cancelled the sale of its largest bus manufacturer, Ikarbus, to Russia’s Avtodetal Service over contractual breaches that included failure on the part of the buyer to fulfill his obligations under a post-privatisation social programme.
Serbia sold 39.2% of Ikarbus to Avtodetal Service for 7.2 million euro ($10.3 million) in August 2008. The Russian buyer increased its stake in Ikarbus to 49.4%, paying a further 1.9 million euro, and was planning to become majority shareholder through a capital hike, Serbian media reported in October.
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The buyer has also misused Ikarbus real estate assets, acting in breach of the contractual terms, and has failed to submit a bank guarantee as required, Serbia's Privatisation Agency said in a statement late on Thursday.
Ikarbus workers have not been paid since March while Avtodetal Service is facing outstanding obligations totalling 142.6 million dinars ($2.2 million/1.5 million euro) from non-payment of salaries, taxes and social security contributions for the period between December 2008 and June 2009, the statement also said.
The Ikarbus workers have been on strike over unpaid wages since July 1, bringing operations to a complete halt while the company’s account, with a balance of 765.8 million dinars, has been blocked since July 15, it added.
(1 euro=93.4524 Serbian dinars)