Former Bosnian giant on the verge of closure, entire property offered

(Patria) - The third public call issued by Koksara d.o.o. Lukavac for the takeover of the company's property under lease, with the aim of maintaining operations in bankruptcy, was open until noon yesterday.

As stated in the text of the public call, the entire property within the company's premises is offered for lease, with a focus on starting and maintaining the operation of the AMK and Koksara factories, as well as other plants according to possibilities. The potential lessee would be required to take over the procurement of raw materials, sales of finished products, plant maintenance costs, as well as the complete business risk.

The public call was also addressed to previous suppliers and partners in Germany, Great Britain, Malta, as well as other markets.

Bankruptcy administrator of Koksara, Almir Bajrić, stated that after the deadline of January 22nd, an additional two days will be given for any offers that might arrive by mail, considering that they are received through the protocol of the Municipal Court in Tuzla.

– After that deadline, we will know if there were any interested parties. No one has contacted me up to this moment. If no one responds, I believe the Creditors' Board might ask the current lessee to continue operations. If they also state that they do not wish to extend, I fear we will not be able to continue – Bajrić told Oslobođenje.

He emphasized that Koksara, as an industrial system, does not have its own funds for working capital.

– This is an industry that requires about 50 million KM in working capital to function normally – Bajrić stressed.

As a reminder, the company H&P Zvornik, which is part of the Pavgord group, took over Koksara under lease in November and began managing the production process. However, due to poor financial results, they planned to end the arrangement on December 22nd and ordered the shutdown of the coke battery.

Nevertheless, management was extended until February 22nd, while bankruptcy authorities continue their search for a new strategic partner.

The president of the Koksara Trade Union, Ermin Halilović, says that, according to the information he has, no one has responded to the public call.

– The company from Zvornik operates until February 22nd, and if a solution is not found by then, closure will follow. Unfortunately, everything indicates that we will end up like the 200 workers who lost their jobs after bankruptcy was declared – Halilović warns.

He adds that Koksara is a specific industrial system that, once shut down, cannot be easily restarted.

– The shutdown of the fifth coke battery would mean the end, just as it was with the fourth battery earlier. The consequences would also be felt by Željeznice FBiH (Railways of FBiH), considering that 25 to 30 percent of its freight traffic is directly related to Koksara – Halilović pointed out.

Halilović believes that the state should play a more active role in finding a solution.

– While coke prices on the world market are low, the state should subsidize production for a few months to find a long-term solution. However, when money is mentioned, everyone says it's not possible – he concluded.

The fate of Koksara Lukavac, one of the key industrial plants in the Tuzla Canton, thus remains uncertain, while time for finding a solution is rapidly running out.