Source: Blic | Monday, 25.07.2016.| 09:44
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The state prepares plan B for Galenika – Potential EUR 130 million debt write-off

In case that the sale of Galenika fails, the state has prepared the plan B for the pharmaceutical company.

The plan envision a debt write-off of around EUR 130 million, in which case Galenika would be repaying bank loans until 2022.

In two days, it will become known whether the only state-owned pharmaceutical company will get a new owner. The sale deadline expires on July 27, and in case that the four interested companies should give up, the Zemun-based factory will continue operating thanks to the plan B. As Blic learns, Galenika's management and privatization adviser have prepared an alternative, with the focus on the factory's debts towards the state and the banks in the amount of around EUR 200 million.

– The state would write off around EUR 130 million of its receivables. These are Galenika's debts towards state-owned companies like EPS and Srbijagas, which, for example, Galenika owes more than EUR 11 million for gas alone. On the other hand, Galenika would be repaying its debts towards banks in the total amount of around EUR 70 million in the next five to seven years – said a well informed Blic source and added that the plan would soon be submitted to the Government.

As Blic has learned, the management of Galenika will meet the heads of the banks on Monday, July 25. At the meeting, whose outcome might prove to be crucial to Galenika's further operations, there will also be talk about the possibility of approving a grace period for the repayment of accumulated debts.

The tender documentation for the purchase of 25% of Galenika has been bought by four companies.

– It remains to be seen now whether any of them will make a final offer. The Indians have made the best impression. Their approach was the most serious one, they examined the finances and the production in detail, but they placed focus on the market, both the local and the foreign one. The Finnish were the only ones who haven't showed up – the Blic source says.
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