THE END FOR "ZASTAVA" AUTOMOBILES: The most famous factory in Yugoslavia declared bankruptcy

- The declaration of bankruptcy means that they will be selling assets to pay the debts to creditors - said the bankruptcy judge Branislav Jovovic

The Commercial Court in Kragujevac made the decision on the bankruptcy of the company "Zastava cars AD" . President of the Commercial Court and Bankruptcy Judge Branislav Jovovic told Beta news agency that he issued the decision on bankruptcy because nobody filed a reorganization plan of the factory before the deadline, 21 October .

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- The declaration of bankruptcy means that they will be selling assets to pay the debts to creditors - said the bankruptcy judge Branislav Jovovic.

Before the Commercial Court in Kragujevac, first creditors' hearing on bankruptcy proceedings over company "Zastava cars AD"  where the report of the Commissioner Trustee has been accepted of the Agency Bankruptcy Supervision of economic financial condition of the factory.

It was stated that the company's obligations amounted to about 40 billion, and the greatest debt was to the Paris Club and London Club (about 24.5 billion) and the Development Fund of the Republic of Serbia (about 10 billion).

Unpaid claims of the debtor are dozens of times lower than the liabilities and amount to about 650 million dinars.

The bankruptcy estate has entered, inter alia, the two cash accounts in the amount of 350 million dinars, real estates worth 95 million and 200 million for which the repayment has been estimated.

The factory "Zastava cars AD", which in the 1980s employed several thousand workers, welcomed the opening of bankruptcy this year with only three employees.

(Telegraf.co.uk / Beta)