PPRP for HIP Petrohemija adopted – Claims partly converted into capital, partly written off

The Commercial Court of Pancevo reached the decision on adopting the Pre-packaged Reorganization Plan for HIP Petrohemija today, and the PPRP envisages for all the remaining creditor's claims up till January 31, 2017, to be either converted into Petrohemija's capital or written off, the company reported.

– The adoption of the PPRP secures the completion of the company's financial restructuring and stable operations in the future. The creditors have converted 52.3% of the total claims, whereas 47.7% have been written off, so the issue of old debts has been solved – stated Velimir Unkovic, Managing Director of HIP Petrohemija.

As the press release says, Unkovic said that HIP Petrohemija's operations were stable and that the company generated positive business results, with all the liabilities being settled on time.

Following the realization of the PPRP, around 76% of the shares will be owned by the Republic of Serbia and related entities, whereas the remaining 24% of the shares will be owned by NIS and Lukoil.

We expect the measures envisaged by the PPRP to be realized in a short amount of time and no later than by the end of 2017, Unkovic added.

He estimated that the adoption of the new PPRP was a big step forward towards reaching a long-term solution regarding the company's status, which the company's management is working on intensively in cooperation with the Government of Serbia.

Considering the strategic position of HIP Petrohemija as the biggest producer of petrochemical products and one of the most important exporters and its clear balance sheet and positive business results the company has been realizing in the past two and a half years, we believe that investments in development are the basic requirement for achieving the goal of operations sustainable in the long term, Unkovic says.

HIP-Petrohemija a.d. Pančevo

NIS a.d. Novi Sad

Privredni sud u Pančevu

HIP Petrohemija Pancevo

NIS

Lukoil

PPRP Petrohemija

HIP Petrohemija Pre packaged Reorganization Plan

Velimir Unkovic

Commercial Court of Pancevo

Petrohemija restructuring

Petrohemija privatization

Petrohemija operations

Petrohemija debts

Petrohemija reorganization plan