23 March 2012 17:50 [Source: ICIS news]
LONDON (ICIS)--The Croatian economy ministry has arranged a debt-to-equity restructuring deal to save the Dioki Group from bankruptcy and ensure its workers receive wages for six months’ unpaid work, the ministry said on Friday.
Current majority owner of the low density polyethylene (LDPE) producer, entrepreneur Robert Jezic, had agreed to reduce his holding in the company to 1% so that creditors could have debts owed to them converted into ownership stakes, it said. Creditors include state-owned electricity provider HEP, the gas division of Croatian group INA and state-held rail operator Hrvatske Zeljeznice, it added.
The overdue salaries would be paid solely from the assets of the company and not from state funds, the ministry said.
Recent months have seen a series of demonstrations by employees at debt-ridden Dioki’s mothballed plants in ?xml:namespace>
Earlier in March, the Ministry said it was pushing for an ownership restructuring deal that would rescue Dioki by a March 31 deadline.
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