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Serbia sells insolvent railway firm Zelvoz for 163 mln dinars (1.3 mln euro) - report

Serbia sells insolvent railway firm Zelvoz for 163 mln dinars (1.3 mln euro) - report Source: Ministry of Economy

BELGRADE (Serbia), May 19 (SeeNews) – Serbia's Bankruptcy Supervision Agency said on Friday it has agreed to sell insolvent rolling stock repairer and manufacturer Zelvoz to local company Victory Solutions for 163 million dinars ($1.4 million/1.3 million euro), Serbian media reported.

The creditors of Zelvoz approved the sale of the company to Victory Solutions on Thursday, news agency Tanjug quoted sources from the country's Bankruptcy Supervision Agency as saying. 

In February, the agency said the estimated value of the assets of Zelvoz, including a rail carriage repair hall, the entire capital of four subsidiaries, spare parts and accounts receivables, stands at 1.153 billion dinars ($9.9 million/9.3 million euro). 

The company was sold for 1.5 million euro to a consortium of Romanian companies Remar and Grampet in 2007, but the privatisation deal was cancelled in 2011, as the buyer failed to meet its obligations under the contract.

Zelvoz entered insolvency proceedings in July 2015, with a large debt to the state and employees. Тhe Serbian government unsuccessfully tried to sell the assets of the company twice, in June and November 2016, as no bidders turned up.

(1 euro = 122.970 dinars)

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