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Sep 21, 2023 11:27 EEST
September 21 (SeeNews) - Slovenia's government can no longer extend aid to troubled metal products maker Mariborska Livarna (MLM) and the company needs a new owner to avoid insolvency, economy minister Matjaz Han said.
"Mariborska Livarna needs a new owner and the doors of [current owner] SDH are open to any interested investor," Han said during a visit to the factory of Mariborska Livarna on Wednesday, according to a statement by the Slovenian government.
Earlier this week, Slovenian media reported that German holding company Mutares has withdrawn from the potential purchase of Mariborska Livarna, leaving the Maribor-based group on the brink of insolvency.
According to the Slovenian government, Mutares withdrew from the deal because the economy ministry could not provide a 12 million euro ($12.8 million) state subsidy requested by the German company under the country's Investment Promotion Act. The economy ministry declined to meet the request because it cannot co-finance takeovers under the Act.
On Wednesday, the Slovenian government stated that it cannot provide aid to Mariborska Livarna because the European Union's regulatory framework sets a ten-year deadline for the re-granting of aid, and this deadline has not yet elapsed.
Mariborska Livarna, facing difficulties stemming from the Covid-19 pandemic, supply chain disruptions, the energy crisis, and declining car production in Europe, has been granted a total of 13.3 million euro in direct state aid, disbursed in various installments since 2009, with the most recent installment being provided in 2020.
Mariborska Livarna recorded a loss of 3.6 million euro in 2022, which was covered by its sole owner, Slovenian sovereign holding company SDH, through a capital reduction.
($ = 0.93852 euro)
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