The company Nova Zeljezara Zenica, formerly ArcelorMittal Zenica, has officially submitted a request to open bankruptcy proceedings, the company confirmed.
This concerns the largest exporter from Bosnia and Herzegovina(BiH), which was recently taken over by the Pavgord group owned by businessman Gordan Pavlovic from Foca, in partnership with Ahmed Hamzic.
Nova Zeljezara Zenica emphasizes that the request for bankruptcy was submitted exclusively due to a legal obligation, in accordance with the Federation of BiH (FBiH) Bankruptcy Law and the FBiH Law on Business Companies.
“Nova Zeljezara Zenica, exclusively due to the legal obligation of the company’s legal representative, has submitted a proposal to open bankruptcy proceedings to the competent Municipal Court,” the company said in a statement.
They stress that this procedure does not mean liquidation, but rather represents a legal framework for reorganization and resolving inherited problems, with the aim of preserving production and jobs.
Message to workers and partners: Production remains a priority
The management of Nova Zeljezara Zenica says that it has already undertaken a series of measures and continues to work intensively on stabilizing operations.
“We are convinced that the result will be positive and that together we will continue to build a stable future,” the company stated.
Workers have been sent a clear message that production remains the main priority and that jobs and employee security will not be brought into question.
Likewise, the company has also addressed external associates and suppliers, emphasizing that cooperation and mutual trust remain unquestioned, and that liabilities and obligations will not be jeopardized.
“We thank you for your understanding and for the continuation of successful cooperation, without which the production process would not be possible,” Nova Zeljezara Zenica said.
Losses in the hundreds of millions of BAM
As a reminder, as previously reported, the loss in operations this year will amount to around 100 million BAM, while the total accumulated loss has reached as much as 370 million BAM.
The company is facing serious financial problems, with an additional burden being unfavorable contracts inherited from the previous owner, ArcelorMittal, which, under current, extremely demanding market conditions, prevent the achievement of positive business results.
Development projects still planned
Despite the difficult situation, Nova Zeljezara Zenica is not abandoning previously announced development projects. However, the company points out that a key prerequisite for their realization is the construction of a power plant using municipal and bio-waste, which would enable more stable and long-term sustainable operations.
