Agroziv sells entire property - 35.4 million euros for former giant

Pancevo-based meat production company Agroziv in bankruptcy announced a public call today for the sale of the whole property whose value is estimated at 3.7 billion dinars (about 35.4 million euros).

- The property offered for sale includes the land, facilities, machines and equipment, shares in other companies and receivables - it is stated in the ad published in the today's issue of daily paper Politika.

The deadline for submission of bids is October 20, while the public opening of bids will be organized at the Commercial Court in Pancevo on October 28. All juristic and physical persons are free to participate.

The bids whose value is smaller than the specified deposit of 743.6 million dinars (about 7 million euros) will not be taken in consideration.

It is specified in the ad that the estimated value of Agroziv is not the minimum acceptable value of Agroziv and that it is not mandatory for bidders in any other way.

The property that is put up for sale also includes the administrative building of Agroziv in Pancevo, eight silos for fodder, tourist-catering facility in Medja, Bolji Zivot motel in Srpski Itebej, Toracana restaurant in Torak, Olimpija cafe in Torda, the administrative building, a store, Kozara motel and Bosna cafe in Zitiste, as well as a part of the house in Belgrade and other auxiliary buildings.

For sale is also the land at 33,000 square meters in Zitiste, poultry breeding equipment, incubators, slaughterhouse equipment, equipment for cooling, packing and freezing poultry meat, trucks, refrigerator trucks, tractors and other agricultural machines.

Agroziv also sells its shares in the following companies: Agroziv Promet i Finansije in Pancevo, Zivinavet in Zrenjanin, Panonija in Crepaja, Agroziv Invest in Zitiste, Agroziv in Banja Luka, Pescar Promet in Banatski Karlovci, as well as the receivables from buyers in amount of 1.6 billion dinars (about 15.6 million euros).

The management of Agroziv announced in June 2010 that it was preparing a new plan for reorganization of the company.

Agroziv's Executive Director Miroslava Neskovic-Glumac said to the press on that occasion that the making of the reorganization plan was underway, with the additional conversion of a part of the debt into the share capital of Agroziv.

Agroziv, which has over 1,000 employees, entered the bankruptcy process on May 28, 2008, after the police arrested two directors of the company and three directors of public companies in Zitiste on March 31st on suspicion of committing several crimes and damaging the state for about 18 million euros.

The Commercial Court in Pancevo accepted the ten-year plan for reorganization of Agroziv in November 2008, which envisages the conversion of 5.5 billion dinars out of 13 billion dinars worth of debts into the ownership share of creditors, and the rest into a ten-year loan.

Pursuant to that plan, the biggest shareholder of Agroziv, among total of 428 creditors, has become AIK Bank with the share of 17%. Other major creditors are NLB Bank, Delta Agrar, Invej, Dunavka, Zitomlin.