Jugoremedija evaluated at EUR 32.5 million – Creditors give consent for sale of Zrenjanin pharmaceutical factory

The new evaluation of the property of the ruined Zrenjanin pharmaceutical factory Jugoremedija unexpectedly opens a possibility of settling the liabilities towards creditors and, partially, to small shareholders, through a bankruptcy procedure.

When it seemed that all hope was lost for a positive outcome of Jugoremedija's bankruptcy, the auditors of SM Inzenjering performed an evaluation of Jugoremedija by order of the Commercial Court of Zrenjanin, estimating the company's value at EUR 32.5 million, which could have far-reaching effects of the pharmaceutical company's future. This is the fourth evaluation since 2012, and, according to the creditors, it finally reflects Jugoremedija's true value.

– This evaluation definitely refutes all the allegations of the factory's being run poorly and illegally from 2007 till 2012. Actions caused by those rumors lead to the bankruptcy in the end, which, unfortunately, cannot be changed now – says Vladimir Pecikoza, president of the Board of Creditors.

What can be done, Pecikoza adds, is to fully settle the liabilities towards the creditors through the sale, as well as to at least partially recompensate the small shareholders for the damage they've suffered. The Board has therefore given consent, by accepting the evaluation of SM Inzenjering, to the court and the bankruptcy supervisor for the sale of the factory through public bid collection.

The factory's facilities are equipped in line with European standards, and its biggest value consists of medical drug licenses.

Following the evaluation, the bankruptcy supervisor, Radovan Savic, prepared for putting Jugoremedija up for sale as a legal entity through public bidding. In this case, the auction would start at 50% of the estimated value of the factory's property. If the sale is successfully realized, it might primarily secure the money for repaying the secured creditors (with mortgage on property) and, partially, for settling other liabilities.

The leading creditors, with mortgage on Jugoremedija's property, are Hypo Bank, with claims of RSD 966 million, the Development Bank of Vojvodina (RSD 431 million), Komercijalna Banka (RSD 115 million)... Around 400 former employees claim unpaid salaries.

According to the Central Securities Depository, Jugoremedija has 4,175 small shareholders. They own 54.2% of the shares, whereas legal persons and the state own 45.8%.

Jugoremedija a.d. Zrenjanin

SM-inženjering Beograd

Privredni sud u Zrenjaninu

Razvojna banka Vojvodine a.d. Novi Sad

NLB Komercijalna banka AD Beograd

Centralni registar HOV ad Beograd

Jugoremedija

Jugoremedija pharmaceutical factory

medical drug production

Jugoremedija bankruptcy proceedings

sale of Jugoremedija

Jugoremedija bankruptcy

pharmaceutical industry in Serbia

Vladimir Pecikoza

medical drug licenses

Hypo Bank