Video: Gold mining faces a cliff after 2025, CRU analyst predicts
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Montenegro’s only aluminium plant is kaput. The company fell into bankruptcy on Wednesday after several months of failed reorganization attempts.
The company, Kombinat Aluminijuma Podgorica (KAP), is Montenegro’s top exporter.
A Montenegrin court declared the company bankrupt and has ordered its sale. The proceeds will be used to repay the firm’s $516 million debt – an amount which, according to Reuters, equals 10% of the country’s economic output.
KAP employs 700 people, according to a local news site (Serbian language). Employees believe an investor will buy the company and save their jobs. A union president told reporters that the bankruptcy would not affect employees.
According to one news report, Rusal- the world’s largest aluminium company – was interested in purchasing KAP in 2005. Instead, Salomon Enterprises – a company by the same owner as Rusal – bought majority shares. The state took back half of these shares several years later in a debt equity swap.
Montenegro has been facing a lot of international pressure – especially from the European Union – to let the heavily-subsidized firm die. Earlier this year, the International Monteary Fund urged lawmakers to shut the debt-ridden plant as it was soaking up €3 million in state subsidies each month.
Comments
Jacob Wadsworth
You can never really tell whether a certain company is doing good. Even big companies fail and get bankrupt because of the big investments and risks that they have taken. I hope the company can rise again even when in the hands of another owner so long as the jobs of those employees will be maintined. – http://www.ctconsumercenter.org/