Serbia readies debt restructuring plan for Galenika if privatisation fails

, News

The Serbian government has prepared a plan B for indebted state-controlled pharmaceutical company Galenika, which envisages a restructuring of its 200 million euro ($219.5 million) debts, in case that its efforts to find a strategic partner for the company fail, local media reported on Monday.

The deadline for submitting final bids in a tender for the sale of a 25% stake in Galenika, in which four foreign firms have shown interest, expires on Wednesday.

However, the state, which controls 70% of Galenika has prepared the plan B, under which it would write off Galenika’s debts towards state-owned companies, amounting to some 130 million euro, and reschedule another 70 million euro of debts owed to banks for five to seven years, Blic daily reported, quoting sources.

Galenika is one of the remaining 17 state-owned Serbian companies bound to be privatised or liquidated as part of commitments which the country has undertaken under a 1.2 billion euro stand-by arrangement with the International Monetary Fund (IMF).

According to previous media reports, the four companies that bought tender documentation for acquiring 25% of the Zemun-based factory are Bulgarian drug maker Sopharma, India’s Cadila Pharmaceuticals, Finnish investment fund KJK Capital, and London-based investment fund Frontier.

Source; See News