The Board of Creditors of the pharmaceutical factory Jugoremedija in bankruptcy has filed an appeal to the Commercial Appellate Court against the decision of the Commercial Court of Zrenjanin on the bankruptcy of the ruined pharmaceutical company.
The Board of Creditors is trying to find a lifeline for Jugoremedia and stop its property from being sold out to repay the receivables in irregularities made in the court procedure. The court opted for bankruptcy since those who had filed the reorganization plan had failed to amend it even after several requests to do so. The position is that the plan can be considered to have been withdrawn, which is now being disputed to the end of avoiding bankruptcy.
– We believe that the court should have put the plan to the vote before reaching the decision of bankruptcy. The court hadn't solved the dilemma of the factory's value either, as three evaluation houses gave had provided estimates of Jugoremedija's property – EUR 22 million at first, followed by 68 and, finally 17 – says Vladimir Pecikoza, chairman of the Board of Creditors, for Novosti.
The Board has learned that certain local and foreign pharmaceutical companies are interested in purchasing Jugoremedija, but that they make a difference between whether it is to be sold as a legal entity or as land with accompanying buildings, if the bankruptcy remains in effect. Pecikoza says that the Board will do everything in its power for the once renowned Zrenjanin pharmaceutical factory to continue operating.
– The creditors will be left with nothing if the factory's property is monetized, as per the decision by the Commercial Court of Zrenjanin. The bankruptcy would leave 450 workers jobless, but also devalue the shares of nearly 4,000 minority shareholders hoping for Jugoremedija's recovery – Pecikoza points out and says he hopes that the Commercial Appellate Court will decide on its fate by the New Year.
Following the initiation of the bankruptcy proceedings in 2013, the Zrenjanin facilities were rented by Novi Sad's Union Medic. They successfully reorganized the production with around a hundred workers and renewed the manufacture of numerous popular Jugoremedija medicaments. Prior to the bankruptcy being declared, in early November, they canceled the agreement and moved to Novi Sad.