Business News

Ministry Presents Scheme for Salvaging Bankrupt Companies

Ljubljana, 20 August (STA) - In light of the recent bankruptcy of car-seat cover maker Prevent Global and the troubles of other major companies in Slovenia, the Economy Ministry published on its web site on Friday a scheme for salvaging troubled private companies by attracting investors with state subsidies.

The scheme brings no new measures or funds, it is a one-stop-shop for all forms of state aid available to investors who are interested in the preservation of jobs and production at bankrupt companies.

It also includes criteria for assessing the adequacy of bids, the process of selection of investors and basic rules for government intervention.

The government is offering subsidies for employment, training, promotion of foreign direct investments, temporary equity investments by the state-owned PDP restructuring corporation, activities of economic diplomacy, and activities of the state-owned SID export and development bank.

The bids will be assessed based on the number of jobs the investor offers to preserve, the duration of employment, investor's past references, future prospects and the feasibility of proposed financing.

If all conditions are met, the ministry and the investor will agree on a package of measures that will help to implement the investor's business plan.

The investor will in turn have to prove that they can provide the facilities and equipment for production, that they have orders or buyers for the products and sufficient funds for the launch of production.

The investor will be informed of the available state subsidies in a note that will be used in the talks with the receiver. The ministry asserts that all request for subsidies will receive priority handling.

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