Bankruptcy procedure initiated in Hipol from Odzaci – Chemical giant's account frozen for 470 days

The Commercial Court of Sombor has reached the decision on initiating the bankruptcy proceedings in the bankruptcy owner Hipol AD Odzaci due to permanent insolvency. The Bankruptcy Supervision Agency has been appointed as the administrative receiver.

The chemical industry Hipol from Odzaci is one of the companies which were being privatized and were waiting for a new owner. The largest business entity in the municipality of Odzaci has already gone through a bad privatization procedure. Namely, Slovenia's Orka, i.e. its owner, Gregor Cencic, took out an unfavorable loan in the amount of EUR 11 million, without investing anything in Hipol, which is obliged to repay the debt.

Euro Gas DOO Subotica filed a motion for initiating the bankruptcy proceedings without preliminary proceedings against the bankruptcy owner Hipol AD Odzaci on October 5. The motion states that Euro Gas holds rights to two receivables from Hipol – one based on the assignment of claim with the transfer of security instruments signed between Nova Ljubljanska Banka DD Ljubljana, as the assigner, and Euro Gas DOO Subotica, as the assignee, and the other based on the assignment of claim signed with PW Tyrex from Poland. Both contracts were authenticated by a public notary.

Hipol disputed Euro Gas' capacity as an authorized petitioner, based on the position that the assignment of claims was signed with PW Tyrex without the Government of Serbia's consent, which is necessary according to the Law on Foreign Exchange Operations.

Furthermore, Hipol claimed that the debt towards the Polish company hadn't arisen from the foreign trade operations, but from the final and enforceable judgment of the local court and that, as such, it had been transferred to Subotica's Euro Gas in full accordance with the law. According to the data of the National Bank of Serbia, Hipol's account has been constantly frozen for more than 470 days in the amount of over RSD 1.5 billion.

Last year, Hipol was on the list of 43 enterprises in restructuring left unprotected by the state, i.e. depending solely on the creditors. After the breakup with Orka, the consolidation of Hipol followed and the production capacity was raised by 100%. Hipol also acquired a license for the production and trade of liquefied petroleum gas. The company's operations are very important for the municipality of Odzaci, as Hipol employs more than 200 workers, which is why finding a good strategic partner is of great significance.

Hipol a.d. Odžaci

ORKA d.o.o. Ljubljana

Euro Gas d.o.o. Subotica

Nova Ljubljanska banka d.d. Ljubljana

Privredni sud u Somboru

Agencija za licenciranje stečajnih upravnika Beograd

Narodna banka Srbije Beograd

Vlada Republike Srbije

Orka Slovenia

Nova Ljubljanska Banka DD Ljubljana

PW Tyrex Poland

Commercial Court of Sombor

Hipol bankruptcy proceedings

Hipol privatization

Gregor Cencic

Law on Foreign Exchange Operations

NBS

production of liquefied petroleum gas