SARAJEVO (Bosnia and Herzegovina), July 7 (SeeNews) – Maltese company Coast Line Commodities Ltd has offered to take control of Bosnian metallurgical coke producer Global Ispat Coking Industry Lukavac (GIKIL) by repaying the debt of one of its shareholders, state-controlled coking plant KHK Lukavac, local media reported.
Coast Line Commodities has sent a letter of intent to the Tuzla township government to repay 7.54 million marks ($3.93 million/3.85 million euros) owed to the township government by KHK Lukavac, reported the Faktor news agency on Wednesday.
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KHK, which is currently in bankruptcy proceedings, owes 7.26 million marks to the cantonal Ministry of Industry, Energy and Mining and 278,762 marks to the cantonal Ministry of Finance, according to the media. .
In the letter of intent, Coast Line Commodities acts as a related entity to a company that is a major shareholder in Croatian Adriatic port operator Luka Ploce, Faktor said, without giving further details.
GIKIL was established in 2003 as a joint venture between KHK Lukavac and Indian steelmaker Ispat Group. It employs 1,000 people.
The canton of Tuzla is one of the 10 cantons of the Federation, one of the two autonomous entities that form Bosnia and Herzegovina. The other is the Serbian Republic.
(1 euro = 1.95583 marks)