Business News

Govt Confirms EUR 6M Capital Injection for Peko

Ljubljana, 29 December (STA) - The government confirmed on Thursday a EUR 6m capital injection for the state-owned footwear maker Peko, which is to be executed if the company finds a private investor and strikes a deal by the end of February with creditor banks to extend at least EUR 1.6m of Peko's short-term debt for at least three years.

A further condition for Peko to receive the injection is a three-year money-flow plan of the group which must be confirmed by the Capital Assets Management Agency (AUKN), according to the cabinet's press release.

Last week's unofficial information meanwhile indicated that Peko was to get EUR 6m by the end of the year, and another EUR 6m in instalments next year under the condition of a successful restructuring.

If Peko fails to find a private investor by 28 February, AUKN will be tasked to redeem the EUR 6m and return it to the state budget.

AUKN must supplement the company's restructuring plan, which was presented to the government in mid-December, with a number of comprehensive analyses by 20 February and an exit strategy if no private partner is found to take over the state's investment.

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