Radeče papir's creditors' comittee votes in favour of the new price arrangement. Paper mill auction expected for November.
Slovenia's bankrupt paper manufacturer Radeče papir is to be put up for auction. According to information from the receiver's office, the auction will be held in November; the administrator will soon make an official announcement regarding the publication of the auction date.
The sales price for the entire assets of Radeče papir amounts to €6.18m, a ruling from the Disctrict Court of Celje revealed. The figure indicates that Radeče papir’s creditors will have to settle for notably less than initially expected. The liquidation value for the assets was previously set at almost €15m of which €8.5m accounted for Radeče papir’s real estate and around €6.5m for all other assets. According to the court ruling, Radeče papir’s creditor committee voted 5:1 in favour of selling the mill at a lower price.
According to reports in Slovenian media, the new sales price corresponds to the sum which the Turkish printing, paper converting and wholesale company Saray Matbaacilik Kagitcilik, the only serious suitor so far, is prepared to pay. Saray Matbaacilik Kagitcilik had submitted a non-binding offer of €15.4m in July, but has reviewed its offer by €9.0m after conducting a due-diligence investigation of Radeče papir’s facilities, reports in the Slovenian press revealed.
Production at the paper mill in Radeče, in eastern Slovenia, has meanwhile been completely idle for more than half a year. The mill houses two paper machines with an installed production capacity of 36,000 tpy of woodfree uncoated paper and 9,000 tpy of banknote and security paper. Radeče papir had initially tried to restructure its debt but finally had to file for bankruptcy in April 2012.
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