Ljubljana/Koper, 25 April (STA) - The struggling automotive group Cimos officially sold the Ljubljana-based hydro turbine manufacturer Litostroj Power to Czech company Energo-Pro for EUR 21.4m on Friday after SID banka, the state export and development bank, withdrew a lien on Litostroj's assets.
The business daily Finance reported today that EUR 5.6m from the purchasing sum will be transferred to SID's account, while the rest will be put on a special account until Cimos's creditors agree on how to replace the collateral to SID.
Cimos has been selling off non-core assets to deleverage, yet the sale of Litostroj Power as its most prized asset had been dragging on for years.
The Koper-based Cimos had pledged Litostroj Power, which is seated in Ljubljana, as collateral for a EUR 60m loan with SID.
While the deal provides vital liquidity for Cimos, it also allows Litostroj Power to again obtain guarantees and new loans, Finance wrote.
Several bidders had vied for the 100% share, including the KKCG fund, also from the Czech republic, and the Slovenian-Croatian consortium Kolektor Končar.
Litostroj Power, which does not have a net debt, expects to generate over EUR 70m in revenue this year.
Cimos, which employs 7,000 workers and is one of the few companies that boast revenue growth in what is a troubled period for the car industry, declared insolvency in early March.
Finance has reported that the group's outstanding financial debt was about EUR 400m, of which EUR 350m was to Slovenian creditors.