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New Difficulties for TLM: Creditors Reject Restructuring Plan

Creditors of Šibenik’s TLM Aluminium on Tuesday rejected the amended financial restructuring plan presented by majority owner – Russian entrepreneur Igor Shamis, at a hearing before the Settlement Council of Fina, and a decision on the suspension or acceptance of the pre-bankruptcy settlement procedure will be made only after the Ministry of Finance decides on four creditor appeals regarding the current course of the procedure.

Against Shamis’s restructuring plan for TLM, the Šibenik aluminium giant with more than 600 employees, creditors whose claims amount to more than 77 percent of the established claims of 234.48 million kuna expressed their opposition, while creditors with less than 23 percent of claims voted for the Russian entrepreneur’s plan. Shamis’s plan for TLM was rejected by as much as 93 percent of debtors from public administration and companies in majority state ownership, who claim just over 22 million kuna, and it was also rejected by a majority of banks that claim 96.8 million kuna and a group of other creditors whose claims are around 114 million kuna.

At the hearing, Shamis presented his amended restructuring plan for the company, which he claims offers creditors a debt buyout to avoid the company’s bankruptcy. He also emphasized that he is backed by a strong European investment bank and that all creditors will receive his binding offer with the name of the bank that will, as highlighted, support the new investment cycle in TLM by October 27. He stressed that all banking transactions, i.e., payments to creditors, will be carried out by December 27, thus ensuring capital for restructuring the business and restarting production.

– TLM is in the hands of creditors, and I want to buy out the debts and continue production, Shamis emphasized, adding that there are other alternatives in saving the struggling Šibenik company, but that other interested parties, as he pointed out, do not want the entire company.

Although he was confident before the hearing that creditors would accept his offer, he had no comments after their opposition and rejection of his plan.

– The biggest problem at this moment, regarding TLM workers, is the four appeals on the pre-bankruptcy settlement that go to the Ministry of Finance, but which can also be a lifeline. If one of those appeals is accepted, a new procedure will begin, allowing other interested investors to enter in an additional sixty days and we will try to save TLM, emphasized Vedran Dragičević, president of the Metalworkers’ Union, adding that he believes the future fate of TLM is in the hands of the Ministry of Economy and the state and that TLM’s bankruptcy is the worst option.