Fertilizer plant HIP Azotara will go into bankruptcy proceedings because it failed to achieve positive results despite all attempts to increase efficiency and reduce costs of input raw materials, Energy Minister Alekandar Antic said on Tuesday (Jul 10). He noted that launching of bankruptcy proceeding in this situation is not only meeting of commitment to the IMF, but above all a responsible attitude towards Serbian citizens, given the indebtedness of the company. The energy minister added that after the bankruptcy, Azotara will be offered for sale, which will enable possible new owners to reorganize production without being burdened by old debts. Azotara is majority owned by public gas company Srbijagas. The government has been looking for a strategic company for the company in vain.
Antic reminded that in the past years the government has exerted enormous efforts to help the companies from the chemical complex to stabilize their business, solve debt problems and guarantee conditions for production that will not create new debts. As a results of these efforts, petrochemicals producer HIP Petrohemija is working significantly better and registers profit, while chemical producer MSK does not posts losses, he noted. The minister added that the two companies are in the process of privatization or finding a strategic partner.