Bosnia's cigarette factory FDM faces bankruptcy.

By bne IntelliNews July 14, 2011
Bosnia's Muslim-Croat Federation government obliged the entity's tax administration to file a bankruptcy claim against cigarette factory Fabrika Duhana Mostar (FDM), being its biggest creditor, ONASA news agency reported. The factory has not been operating since 2009, while the company accounts have been frozen for over a year. The decision follows several unsuccessful attempts to sell the company. We remind that in September 2010 the tender for the 67% state-owned stake in FDM failed as no bids were submitted by the Sep 13 deadline. This was the fifth attempt by the government to sell the company. Turkish May Group, German Tobacco Group and Ukrainian Luckyexim had previously expressed interest in FDM. In 2008, FDM was sold to Bulgarian Pazardzhik BT for KM 0.2mn. The buyer pledged to settle FDM's debt (tax, suppliers and employees arrears), to invest KM 7mn and keep the existing employment. However, the deal was annulled in 2009, as the investor failed to fulfill its commitments.
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