Solution found for Agroziv - No sale of subsidiaries until strategic partner is found

The food company Agroziv will resume production normally after it has been agreed not to sell associated companies in bankruptcy until strategic partners are found, Agroziv CEO Predrag Amizic said today.

He reiterated in a statement to the press in Zrenjanin that Agroziv was in danger of the business system collapse due to the announced sale of property in bankruptcy.

As Amizic added, the announced sale of Zivinoplus, which owns several farms, incubator and a repro center, would leave Agroziv without the most important link in the production process and, thus, bring the company's survival into question.

- Agroziv has been experiencing serious problems over the last three months, but a meeting held few days ago resulted in an agreement on how to overcome these problems. No juristic person in bankruptcy will be sold until a strategic partner is found for the company - said Amizic.

Agroziv is in the possession of the public company Srbijagas since 2010. Before that, it operated about thirty associated companies and subsidiaries, and all required production capacities were owned by these companies and subsidiaries that are now in bankruptcy. Based on lease agreements concluded with bankruptcy managers, Agroziv continued to use necessary production capacities that remained in the posession of the businesses in bankruptcy.

As Amizic noted, the meeting at which aforementioned agreement was reached was attended by Serbian Agriculture Minister Goran Knezevic, Justice Minister Nikola Selakovic and Srbijagas CEO Dusan Bajatovic.

He also said that Srbijagas would provide guarantees for an agreement with the Republic Commodity Reserves Directorate on the supply of 7,500 tonnes of corn to Agroziv, which should secure the company enough raw materials for the next six months.

Agroziv currently employs about 1,300 workers. The company's revenues in 2012 amounted to about EUR 50 million, twice as much as in 2011.