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Nov 27, 2017 13:18 EEST
November 27 (SeeNews) - Serbian state-owned truck maker Fabrika Automobila Priboj (FAP) expects to start deliveries to the country's Army by the end of the year, in order to exit insolvency proceedings and stabilise its financial position, its managing director, Ranko Vukovic, has said.
After the completion of the first stage of its debt restructuring plan, FAP will become part of Serbia's state-owned defence industry, Vukovic said in a video file posted on the website of public broadcaster RTS on Friday.
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The company is already working on the construction of 20 trucks for the Serbian army under a 2.5 million euro ($3.0 million) contract, awarded by the defence ministry, RTS said.
Under the debt restructuring plan of FAP, its 8.7 billion dinars ($86.9 million/72.9 million euro) liabilities will be converted into capital, with the government retaining a 95% shareholding interest in the company.
Foreign investors from Egypt and Algeria have expressed interest in the privatisation of FAP, RTS said. In April, the public broadcaster reported that Chinese investors held talks on the potential purchase of FAP during the Belgrade Motor Show that took place between March 23 and April 2.
In February 2015, Serbia's privatisation agency called a tender for the sale of FAP, which attracted a single bidder - the Finnish company Sisu Auto. The bidder was believed to be close to signing an agreement but eventually withdrew from the process.
FAP produces trucks, buses and trailers in addition to chassis and spare parts. The company was established in 1953. In 2002 the Serbian government started preparations for its privatisation.
(1 euro = 119.541 dinars)
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