Extensive and long-neglected growth potential exists in Serbian insolvent companies that are in the process of bankruptcy or financial restructuring. Almost 2,000 out of 3,017 state-owned enterprises that were privatized between 2001 and 2013 have ceased operations, sunk into bankruptcy or are on the verge of closing down. Promotion of the potential of these companies needs to be accelerated in order to attract much-needed investment and boost the competitiveness of Serbian industry. A key immediate challenge is to accelerate capital investment in the bankrupt companies, companies in the process of privatization or companies which have financial difficulties. Most of those companies still have an excellent business reputation and know-how (and the reason for their collapse has mostly been due to mismanagement by their new privatization owners and many of them possess attractive locations, existing infrastructure and access to transportation. Due to fear of the unknown, potential buyers, lessees and developers avoid these investment opportunities and opt for less “risky” financial and equity transactions. Merely the fear of unresolved proprietary challenges, regulatory hurdles or political constraints has been enough to hinder or stop their business recovery.
Date: January 2014. - January 2015.