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Bosnia Aluminij to Go for Bankruptcy - Report

Metal News - Published on Fri, 12 Jul 2019

Image Source: bne IntelliNews
Reuters reported that Bosnian aluminium smelter Aluminij will file for bankruptcy after closing on Wednesday, putting at risk some 10,000 jobs, including contractors and those at the processing firms it supplies. The smelter was disconnected from the power grid just after midnight over debts incurred because of high electricity and alumina prices. The asset is one of Bosnia's biggest exporters, employing 900 workers in the southern town of Mostar. The closure followed a failed attempt to find a strategic partner for the company, which has total debts of nearly 380 million Bosnian marka (USD 219 million).

Mr Nermin Dzindic, energy minister in the government of the autonomous Bosniak-Croat Federation, Aluminij's biggest single shareholder with a 44% stake, said the company would file for bankruptcy. Small shareholders hold another 44% stake in the firm and the Croatian government the rest.

Mr Dzindic told reporters his government planned to continue talks with potential strategic partner Emirates Global Aluminium and seek new investors for the firm.

More than 70% of the company's debt is owed to state power utility EPHZHB, which in June stopped supplying it with power at favourable prices agreed with the government last December.

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Posted By : Rabi Wangkhem on Fri, 12 Jul 2019
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