Former Kragujevac giant closed – Zastava Automobili declared bankrupt

The Commercial Court of Kragujevac has declared Zastava Automobili AD bankrupt. The chairman of the Commercial Court and bankruptcy judge Branislav Jovovic said that the decision was adopted because the reorganization plan hadn’t been submitted before the deadline of October 21.

– The declaration of bankruptcy means that the property is to be sold out in order to repay the creditors – Jovovic said.

The first meeting of creditors within the bankruptcy procedure was held on October 24 at the Commercial Court of Kragujevac, where the report by the trustee in bankruptcy appointed by the Bankruptcy Supervision Agency was adopted.

It was stated that the company’s liabilities amounted to around RSD 40 billion, most of which towards the Paris and London Clubs (around RSD 24.5 billion) and the Development Fund of the Republic of Serbia (around RSD 10 billion). Unpaid receivables of the bankruptcy owner are several dozen times lower than its liabilities, amounting to around RSD 650 million.

The bankruptcy estate includes, among other items, cash from two accounts in the amount of RSD 350 million, real estate worth RSD 95 million, as well as around RSD 200 million estimated to be able to be recovered.

Zastava Automobili AD, which used to employ several thousand workers in the 1980s, had only three employees this summer, when the bankruptcy proceedings were initiated.

Zastava automobili a.d. Kragujevac

Privredni sud Kragujevac

Agencija za licenciranje stečajnih upravnika Beograd

Fond za razvoj Republike Srbije Niš

Zastava Automobili bankruptcy

Zastava Automobili bankruptcy proceedings

Branislav Jovovic

Paris Club

London Club