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April 4, 2003 - Friday |
Sartid controversy
US steel signed the preliminary contract for buying Sartid, a steel factory located in Smederevo, and 6 shareholders companies founded by Sartid, for $23 million, without any obligation to return Sartid’s debts worth $1.8 billion. This fact caused much agitation and discontent amongst creditors, especially a consortium of Austrian and German banks to whom Sartid owes $100 million.
Sartid has been in bankruptcy procedure. According to Serbian law creditors can claim their debts from the amount which the buyer will pay for the company in bankruptcy. But $23 million is far too small and creditors would obtain very little if any satisfaction in the recovery of their debts with Sartid. It still quite un clear whether the state would guarantee the foreign debts of
Sartid . It is also still unclear if the company in bankruptcy could have been sold without the confirmation of creditors.
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