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Property of “Đakovština” Sold in Bankruptcy

At the sixth public auction held today at the Commercial Court in Osijek, the assets of the failed Đakovo milling and baking industry “Đakovština” d.d. in bankruptcy were sold for 190 million kuna, while the total starting price for today’s auction was 100 million kuna.

Most of the assets, divided into three large technological units, were purchased by the Osijek company “Žito”, the previous lessee of “Đakovština”, which went into bankruptcy at the end of January last year. “Žito” acquired the technological unit Mill and Silos and part of the technological unit Tena, while the namesake bread and pastry factory within that unit was purchased by the Zagreb company “Pan-Pek”, to which “Žito” transferred the lease of Tena in August last year. The technological unit Seed Production was purchased by Croatia banka.

The bankruptcy trustee of the Đakovo company, Perica Mitrović, expresses satisfaction with the price achieved today, as well as the fact that the assets of the bankrupt debtor were sold in less than a year from the initiation of bankruptcy. The satisfaction also stems from the fact that the estimated value of the bankrupt debtor was 277 million kuna, and that the assets sold so far, from today’s and previous auctions, have reached a total price of 220 million kuna. It is estimated that ultimately from the sale, for which there are still a few halls and parcels outside the factory circle remaining, an amount will be achieved that is only about 20 percent less than the estimated value of the bankrupt debtor, says Mitrović, announcing that the final hearing for “Đakovština” could be in May this year, thus concluding the bankruptcy.

“Đakovština” went into bankruptcy in January 2010 due to over-indebtedness and a blockade of 224 million kuna. At the time of the opening of bankruptcy, it had about 560 employees whose claims amount to about 43 million kuna. The size and specificity of the bankruptcy of this company is also indicated by the fact that there are about 3,000 creditors with total claims of about 920 million kuna. Among the creditors, most were farmers who delivered wheat and other crops to its silos, and the goods from them subsequently disappeared, which is why most of these creditors were compensated by the state. After two major waves of layoffs, “Đakovština” today has about 250 employees, and Mitrović estimates that the workers will be able to settle their claims from the sale of assets in the amount of 30 to 40 percent.