July 22 (SeeNews) - A Serbian court said on Thursday that it has declared state-owned car maker Zastava Automobili bankrupt.
The court found the Kragujevac-based company to be permanently unable to service its financial obligations and debts, a press officer of the court told SeeNews.
You can download the 2024 Automotive industry in Southeast Europe report here
The court proceedings have been instituted at the request of the economy ministry.
According to reports in local media, Zastava Automobili's debts exceed 60 billion dinars debt (448.5 million euro/$533.8 million) and its accounts are blocked.
Zastava Automobili used to be a unit of the Zastava group, which in its heyday in the late 198O-ies employed 13,500 workers and manufactured 220,000 vehicles per year.
In 2008 Zastava set up a 33/67 joint venture with Italy’s Fiat which started producing the Fiat Punto model at the factory in Kragujevac, in central Serbia. The joint venture company now employs 2,500, as 700 workers decided to accept voluntary severance package offered by the management earlier this month following a decline in demand for its vehicles.
Zastava Automobili in the meantime halted production and started accumulating debts. The state tried to restructure it and privatise it, but failed.
($=112.442 dinars)