Reorganization plan adopted for Jeep Commerce whose debts reached EUR 50 million

Creditors of the company Jeep Commerce voted at a hearing at the Commercial Court in Belgrade for a reorganization plan proposed by this bankruptcy debtor, one of the leading Serbian factories for producing welded pipes and steel and aluminum profiles, which is now expected to soon commission its production lines again.

- This is the largest corporate reorganization in Serbia, based on parameters such as the total debt of about EUR 50 million and the number of creditors, which exceeds 2,000 - said people from the Belgrade-based consulting company WM Equity Partners, which has made that plan and is going to supervise its implementation.

Support to the company's reorganization has come from all sides: banks, Tax Administration and suppliers, which has never happened before in the bankruptcy practice.

The reorganization plan has been backed by the following creditors: Societe Generale Bank, Prvi Faktor Faktoring, Banca Intesa, Hypo-Alpe-Adria Bank, Komercijalna Banka, Credit Agricole Bank, OTP Bank, UniCredit Bank, Tax Administration – Center for Big Tax Payers, and numerous partners and suppliers of Jeep Commerce from the country abroad, including: Arcelormittal Distribution Serbia, Interkomerc, MacSteel International from Great Britain, MANNI SIPRE SPA from Italy, and many others.

Only five of the total of 2,000 creditors covered by the reorganization plan voted against that plan, among which were Volksbank and Findomestic Bank.

The reorganization plan defines a total of 7 classes of creditors. The key measure to repay 100% of debts to all creditors is debt rescheduling, which is why the repayment period is extended to 96 months (8 years), with the annual interest rate of 1.00-1.20%, whereas first six months represent a grace period during which only the interest is paid.