Restructuring plan pushes Srbijagas to bankruptcy says CEO

6. May 2013. / News Serbia Energy

The plan to restructure Srbijagas prepared by the Enegry Ministry is pushing the public company into bankruptcy, it can threaten the stability of the domestic market and cause problems in the realization of the South Stream pipeline, Srbijagas CEO Dusan Bajatovic said on Thursday.

Bajatovic stressed that he is not against the restructuring of Srbijagas, but that he disagrees with the plan proposed by the Ministry and that he requested that the public debate on the proposal be held again.

He told a press conference at Tanjug’s Press Club that Srbijagas has been working on a restructuring plan for two years and that the program includes trade unions. The aim is to get an integrated and financially consolidated company which will have divided activities, but under the umbrella of Srbijagas.

As the company’s CEO put it, the plan made by the Energy Ministry envisages that healthy companies be transferred from Srbijagas to Transgas, and that underperforming companies stay within Srbijagas, which will push the enterprise into bankruptcy.
“According to this proposal, revenues from natural monopolies are divided into four companies, which is inefficient and expensive,” Bajatovic said.

Source;Srbijagas

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