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EDUCATION, RESEARCH AND PRIVATIZATION CENTER OF UBU “NEZAVISNOST”
PRIVATIZATION GOING ON ?
Belgrade, February 10, 2007.
The Education, Research and Privatization Center of UBU “Nezavisnost” stated its opinion in connection with March 7, 2007 as the “D” Day for thousands of legal entities which have neither terminated nor initiated the privatization process.
We are approaching the final phase of privatization of the public companies, as provided for by the Law and subsequent amendments to the Privatization Law, and a large number of public companies has not been privatized, namely, the privatization process hasn’t ended.
When considering the possibilities to be employed by those responsible for the privatization process, in order that the privatization process ends in compliance with the Law, although they do not express their views for the present, we remind that by setting this term the concept “conducting a process” is used in the Privatization Law, meaning its termination as the final phase of the process.
If conducting a process is understood in this way, then one can say with certainty that all privatization processes of public companies will not end till the set deadline.
However, it can be expected that those responsible for carrying out the privatization will rightfully interpret that initiating the privatization process also means its carrying out and that they will, in this way, justify exceeding of the term, and it is expected that the legislators won’t interfere. Though we think that our interpretation of “conducting a process” is right and correct, it shouldn’t be complicated further in this final privatization phase. However, in any case, it should be expected that governmental agencies would take other actions too, in order to regulate this issue by Law and in this way the confusion and other misunderstandings would be avoided.
As, in addition to this unclearness, opinions can be heard that all public companies, which have not been privatized by this term, will be privatized in the bankruptcy proceedings, we give here a precise interpretation as to what one can expect.
No public company doing business and being able to pay its debt can go bankrupt for the reason of non-fulfillment of this condition – exceeding the deadline for privatization.
At the same time, bankruptcy as a way to company privatization, is only possible in public companies which are insolvent. The insolvency of a debtor in bankruptcy is regulated by the Bankruptcy Proceedings Law as follows:
1.Inability of fulfillment of obligations within 45 days as of the due date;
2.Full suspension of payment of one’s obligations within a 30-day period;
3.Probability that one won’t be able to fulfill current obligations at maturity (threatening insolvency).
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