November 9, 2022 finance & economy

Kuwaiti investors interested to buy bankrupt factory in Bosnia

KUWAIT CITY, Nov 8: The Sarajevo Times website revealed that the Kuwaiti investors are interested in buying several real estate and land in Bosnia and Herzegovina, ranging from lands belonging to a “bankrupt” iron factory, to hotels in the center of cities and others in the heart of nature, reports Al-Qabas daily.

The website said in a report that Kuwaiti investors are looking to buy a property in Zenica, north of Sarajevo, Bosnia, where the Zelgizara Zenica Iron Factory is located, which was closed for a long time due to bankruptcy, and its workers are still waiting to complete the sale of its properties to pay their salaries and overdue compensation. He added that the problems of the workers, who number more than 280 people, have not yet been resolved, and files of some of them have been sent to the employment departments in the country to search for jobs for them.

The website added that each worker laid off from the factory needs compensation from the closed iron factory, ranging between 40,000 Bosnian marks ($20,400) and 45,000 marks ($23,000). The representative of the factory workers union, Avdija Halilovic, was quoted as saying that the sale of the assets and lands of the bankrupt factory is proceeding very slowly, while the buyers of those assets and lands expect to get something for nothing, but this will not happen. He added: “Buyers of factory assets will not get anything less than the costs of bankruptcy, including paying the salaries of laid-off workers and buyers of the assets and land of the bankrupt factory should know that nothing is free.

The real estate of the factory has been evaluated, and they know the required price, and if they want to buy it, they will do so.” He explained that selling small parts of the factory’s real estate and land, worth about one million Bosnian Marks (510 thousand dollars) is better now, and this money will be spent on pensions for the workers of the bankrupt factory, pointing out that part of the factory’s land has been sold and a private hospital is being built on it.

Foreign buyers are interested in larger properties in the surrounding area. Halilovic went on to say, “We are awaiting inquiries from Kuwaiti investors about purchasing other properties in Zenica, one of which is the closed International Hotel, which was built in 1978, and the other is the abandoned Bistrichac Hotel Complex, which is located in the heart of the picturesque nature. “We know that those Kuwaiti investors who are exploring investment opportunities in Bosnia and Herzegovina are very interested in these properties. I think the 9 million mark ($4.5 million) price tag for the International Hotel is realistic, given its large size and the presence of several features in it, such as underground parking, its location in the city center, and its proximity to a football stadium, which is often full during matches, tournaments and local and European soccer matches.


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