Bankruptcy proceedings initiated in Zrenjanin's Radijator – Company's account frozen for more than 1,000 days

The Commercial Court of Belgrade has reached the decision on initiating the bankruptcy proceedings in Radijator, a Zrenjanin-based company producing radiators and boilers. As stated, the bankruptcy proceedings were adopted at the suggestion of the Zrenjanin-based company VVV, whose claims amount to nearly RSD 70 million.

The court initiated the previous bankruptcy proceeding is Radijator in November 2016, and it determined in late January that the debtor had tried to overcome financial problems through a Pre-Packaged Reorganization Plan (PPRP). The plan had not been adopted by the creditors, and it had also been determined that there was mortgage on most of Radijator's property and that its liabilities exceeded the value of its property.

The decision also states that the the court determined, by inspecting the October 2016 report on the website of the National Bank of Serbia, that the company's account had been frozen for 1,070 days in the amount of RSD 675.2 million.

Radijator has been operating in Zrenjanin since 1932. It was privatized in 2000, and a Croatian consortium has been its majority owner with a 50.62% stake since 2007.

The core activity of this Belgrade-based company is the production of radiators and central heating boilers.

Around 400 employees used to work in the Zrenjanin facilities. Prior to the New Year's holidays, they were paid RSD 5,000 each from the October salary and told they didn't need to come back to work, and the production was terminated, as the power was cut due to a debt of close to RSD 600 million. Radijator is another one in the line of formerly successful Zrenjanin companies which have gone into bankruptcy.

Radijator a.d. Beograd

VVV d.o.o. Zrenjanin

Privredni sud u Beogradu

Radijator Zrenjanin

VVV Zrenjanin

Radijator bankruptcy proceedings

production of radiators and boilers

Pre Packaged Reorganization Plan

PPRP

Radijator property

central heating