July 25 (SeeNews) - Serbia's government said it has filed for bankruptcy of state-controlled fertiliser maker HIP Azotara after its attempts to find a strategic investor failed.
The economy ministry has requested the State Attorney Office to initiate bankruptcy procedures of Azotara, the Serbian government said in a statement on the 30-month Policy Coordination Instrument-supported programme it had agreed on with the International Monetary Fund (IMF), according to a document posted on the website of the Fund on Tuesday.
You can subscribe to our M&A newsletter here
The attempts to find a strategic investor for Azotara by the end-March deadline set by the government had failed, the government said.
Earlier this month, energy minister Aleksandar Antic said the government plans to launch insolvency proceedings and sell the assets of loss-making Azotara, in line with the government's commitments to the IMF and to the Serbian citizens.The assets of Azotara will be put up for sale which will enable the new owners to reorganise the production activities without worrying about outstanding liabilities, Antic added.
In September, the IMF urged state-owned gas monopoly Srbijagas to dispose of non-core assets by selling its shareholding interest in MSK Kikinda, Azotara and ceramics producer Toza Markovic.
According to data from the Serbian economy ministry, Srbijagas owns 85.06% interest in Azotara.