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.

Related Articles

Serbia's external debt up 4.7% y/y to EUR 25.4bn at end-Feb 2013.

Serbia's foreign debt rose an annual 4.7% y/y to EUR 25.4bn at end-February after climbing 6.6% on the year in January, central bank data showed. In monthly terms, however, the external ... more

Vip Mobile Serbia signs five-year managed services deal with Ericsson.

Swedish company Ericsson said it has signed a five-year managed services contract with Vip Mobile - the Serbian arm of Telekom Austria Group. The agreement includes field maintenance services for ... more

Telenor and Societe General possible buyers of Serbia's KBC Banka - report.

Norwegian telecommunications firm Telenor and France's Societe General are seen as possible buyers of the Serbian unit of Belgium's KBC Group, which has been on sale for several years now, a ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335
Dismiss