Around a billion euros of debt written off – PPRP for MSC Bor adopted

(Photo: rtb.rs)

The program of the restructuring of a EUR 1.2 billion debt involves the Parent Company, the Copper Mines Bor, the Copper Mine Majdanpek and the Bor Copper Smelter Refinery.

The announcement says that this is the largest financial restructuring of a company's debt in Serbia so far.

General manager of MSC Bor Blagoje Spaskovski said that 90% of unsecured debts had been written off, that is, around a billion euros. He explained that the remaining 10% of the debt would be paid in the next eight years, following the one-year grace period.

According to him, MSC Bor is regularly paying off its loan for the new smelter and sulfuric acid factory and has paid USD 46 million to the Canadian EDC Bank so far. MSC Bor's secured debts will be turned into the capital of the Republic of Serbia based on the PPRP.

MSC Bor is one of the strategic enterprises whose protection against the collection of debts expired at the end of May. If the agreement hadn't been reached by the majority of its creditors, the enterprise would have had to go into bankruptcy.