Serbian tire producer Trayal faces bankruptcy.

By bne IntelliNews March 18, 2011
Bulgarian energy company Brikel, which bought local tire maker Trayal back in 2006, has failed to meet its obligations under the investment and social programme agreed upon the acquisition of the company, Novosti daily reported. Krusevac-based Trayal might go into receivership as its debts have reached some RSD 12.4bn and its accounts have been blocked for three years. The company's management, trade unions and the Krusevac local authorities are now looking for ways to keep the company operational. The management said it was negotiating the refinancing of Trayal's debts with the finance ministry, since the state is the company's biggest creditor. The ministry, however, denied that it was in any formal talks on the issue. Brikel acquired Trayal for EUR 12.2mn in November 2006 and pledged to invest EUR 25mn over five years. However, according to data from the privatization agency only EUR 1.5mn have been invested so far. Trayal currently employs 2,280 workers. The privatization agency mulls terminating the sales contract, but trade unions have opposed such a move, as the company recently resumed operations and started paying out salaries. Trayal earlier said it plans to post EUR 50mn in revenues this year.

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