No Sale of Property of Fabrika Reznog Alata Cacak After All – Board of Creditors Didn’t Give Approval for Bid Price

Source: Beta Wednesday, 05.07.2023. 13:32
Illustration (Photo: Bogdan VASILESCU/
The Bankruptcy Supervision Agency has pronounced the sale of the property of Fabrika Reznog Alata (FRA) Cacak in bankruptcy unsuccessful, because the price reached at the auction, RSD 560 million, is lower than 50% of the estimated value, it has been announced today.

The property of FRA was sold on June 13 to the consortium of Unipromet Cacak and Euroline Belgrade, but the Board of Creditors of the factory in bankruptcy did not give approval for the bid price.

The initial price at the public bidding was RSD 235.3 million, and construction land of 30,628 square meters was offered, as well as three production halls, a hall with a restaurant, warehouses, the management building, the facility for the production of ball screws, equipment and stock.

FRA, whose majority owner was the state, and which was pronounced a company of special importance for the defense industry by decree of the Government of Serbia in 2015, stopped working in August 2021.

At the time, 452 factory employees were pronounced surplus workers and given severance packages within the social program financed by the state.

The Commercial Court in Cacak initiated the bankruptcy proceedings in FRA in January 2022, due to the account being blocked for RSD 3.4 billion and large debts toward the creditors, and since nobody had submitted a reorganization plan for the factory within the legal deadline of 90 days, bankruptcy was declared.

FRA was founded in 1953, when it started producing tools, and part of the factory facilities produced for the military industry as well.

In the former Yugoslavia, the factory was the leader in the production of cutting tools, which it sold in both the local and the global market. In its time, it employed around 4,500 workers.

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