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.
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

EUs Sannino invites Bosnian leaders for conciliatory talks on March 22.

The European Commissions director general for enlargement Stefano Sannino has invited the leaders of Bosnias seven main political parties for consultations in Brussels on March 22 in an attempt ... more

Bosnias Serb Republic PPI, CPI inflation eases in Feb 2013.

Growth of consumer prices in Bosnias Serb Republic eased to 0.9% y/y in February from 1.5% y/y in January, as the annual decline of clothing and footwear prices widened, the entitys statistics ... more

Bosnias Federation fails to sell 67% of engineering company Hidrogradnja.

Bosnias Federation has failed to sell its 67% stake in engineering company Hidrogradnja due to lack of investor interest, the entitys privatisation agency said in a statement. The remaining 33% ... more

Follow Us On

Most Read

  1. Iran vs Israel: Who is better equipped for war?
    5 days ago
  2. Saudi Arabia to scale back plans for Neom city
    9 days ago
  3. BREAKING: Iraq, Syria and Jordan close airspace amid Iranian strike on Israel
    5 days ago
  4. PANNIER: Caspian military drills that exclude Russia and Iran have some people in Moscow asking questions
    6 days ago
  5. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    5 months ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    19 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    24 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    29 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    22 days ago

Reports

Dismiss