The management of the thermal power plant and coalmine (RiTE) Ugljevik, a subsidiary of the state-owned power utility Elektroprivreda Republike Srpske (ERS), is planning a share issuance to raise 15.5 million euros to settle part of its obligations to the Slovenian power company HSE. This proposal will be presented at the shareholders’ assembly scheduled for October 8, 2024. The raised funds will be used to pay off part of the debt resulting from an arbitration ruling, which will help reduce the company’s total liabilities and improve its financial capacity and creditworthiness.
The share issuance aims to partially address the principal debt owed to HSE, which amounts to 67 million euros. RiTE Ugljevik has agreed to repay this debt over the next seven years in 14 equal installments, with the first one already paid on June 30, 2024. However, the company still faces unresolved obligations related to an additional 67 million euros in accrued interest.
At the same meeting, shareholders will also consider a proposal to reduce the company’s capital to cover accumulated losses exceeding 90 million euros. Following the procedure, RiTE Ugljevik’s capital is expected to stand at 34.6 million euros.
