Contract with HPK Engineering "in 2 days"

Contract with HPK Engineering "in 2 days"

BELGRADE -- Minister of Economy Zeljko Sertic says the contract with HPK Engineering BV allowing it to manage Zelezara Smederevo will be prepared in the next two days.

The Netherlands-based company "will give USD 20 million to Zelezara with no guarantees," Tanjug quoted him as saying.

Sertic told RTS "there would be talks in the next two days on how to distribute the profit from Zelezara."

He stressed that a minimum of USD 80 million of working capital had been agreed, and that the government would have the right of veto on all important decisions.

"The company has agreed to give USD 20 million of its own assets, its capital, through merchandise and without any guarantees," he said, explaining that it meant that the money, in case of Zelezara's bankrutpcy, would be returned from Zelezara's property, rather than a guarantee fund.

The management contract will cover three years with the option to terminate it early should a suitable partner interested in buying the steel maker show up, he said.