Petrokemija Restructuring to Go Forward

By 29 October 2018

ZAGREB, October 29, 2018 - During a conference call on Monday, the government adopted a decision enabling the completion of the process of recapitalisation by a strategic partner to the Kutina-based Petrokemija artificial fertiliser plant.

The government thus issued approval for the transformation of the state's receivables into Petrokemija's equity capital, and for the acquisition of a stake on behalf of the government in the Petrokemija Agro Trade company and the cabinet also gave a green-light for the conclusion of a contract for the injection of fresh capital and the company's restructuring. The government also adopted a decision authorising the general assembly of the HEP electricity provider to reschedule Petrokemija's debt for gas supplies.

"By adopting this decision the government has fulfilled all the commitments agreed to for the conclusion of transactions and has created the prerequisites for the successful recapitalisation by a strategic partner," the government said in a press release.

The recapitalisation process was launched mid-2017, however, this year "activities have intensified to implement the process through talks and communication with potential strategic partners and the European Commission with regard to confirming that the entire process is in compliance with the EC Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty" the government said in its statement.

Petrokemija issues call for recapitalisation

Kutina-based mineral fertiliser manufacturer Petrokemija on Monday issued a call for subscription of not fewer than 40 million and not more than 45 million new shares in a bid to raise up to 450 million kuna of fresh capital.

The purpose of the recapitalisation is to raise funds for investment that will ensure and improve production, restructuring and the funding of day-to-day business, shareholders said at a meeting on July 9 when the decision to increase the equity was made.

Each investor may subscribe a minimum of one million new shares in the amount of 10 million kuna, while the maximum amount is limited to 45 million shares in the amount of 450 million kuna. The share subscription will take place from 8.30am on October 29 until 4.30pm on October 31.

A general shareholders meeting will be held on October 31 after the previous one scheduled for October 15 failed to take place due to a lack of quorum.

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