Serbia Invites Copper Smelter RTB Bor’s Creditors to Claim Debts

All state institutions and private companies can claim their debts until the end of October, Serbia’s Privatisation Agency said in a statement.

RTB Bor is burdened with debt accumulated during international economic sanctions against former Yugoslavia in the 1990s. Its liabilities are estimated at some $400 million (319 million euro).

Last week, Serbia launched a tender to sell 67% stake in RTB Bor, setting the minimum price at $300 million. The buyer will be obliged to cover the company's outstanding liabilities.

The deadline for placing bids is January 30. Eligible bidders are companies active in copper production, trading or processing that have posted revenue totalling more than $500 million in 2007.

Serbian news agency Beta reported in October that Swiss-registered metal trader Glencore International is interested in developing a strategic partnership with RTB Bor.

Serbia’s first attempt to sell RTB Bor failed last year, when the government cancelled a $400 million deal with Romania's Cuprom because the buyer had not paid the required bank guarantees on time. A second tender for RTB Bor failed in April when Strikeforce Mining and Resources (SMR) withdrew from the sale talks. SMR is part of the Basic Element group owned by Russian tycoon Oleg Deripaska.

Serbia adopted last month legislation allowing buyers of state-owned assets phased payment of up to 70% of the purchase price. Under the amendments, the buyer will be required to pay 30% of the price upon signing the deal and the rest will be payable over a period of up to five years.

Serbia's government had 442 companies left on its privatisation list by mid-October.

($=0.7879 euro)