Protest rally

Deputy minister: Attempt to transform Dioki debts into ownership share fails

19.06.2012 u 15:42

Bionic
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The Croatian government, as a minor creditor in the Dioki petrochemical company, has tried to bring together all Dioki creditors and transform all claims into ownership shares, however, that attempt has failed, Deputy Economy Minister Tamara Obradovic Mazal said on Tuesday after a meeting with representatives of disgruntled Dioki workers.

Obradovic Mazal and Regional Development and EU Funds Minister Branko Grcic held talks with representatives of some 100 Dioki workers who organised a protest rally but were stopped by the police on their way to St. Mark Square housing the government headquarters.

After it failed to persuade Hypo Bank and Zagrebacka Bank to enter the Dioki ownership structure together with the oil company INA, the power company HEP, and the national railway company HZ, the government started a search for a strategic partner, namely a company that would enter the Dioki ownership structure, inject fresh capital and launch the production, Obradovic Mazal told reporters.

However, the potential investor is worried about a suspicion that HRK1.6 billion of business losses is not Dioki's only burden, but that there are some hidden burdens as well so the investor is reluctant to enter the company at this stage. The investor's fear represents a problem also because of a possible launch of the production in Dioki and Dina Petrokemija on the island of Krk, as EUR30 million are necessary for that alone.

As for the payment of late salaries and severance packages to some 450 Dioki workers, the government believes the funds for that can be secured through the sale of part of the Dioki property.

After the talks in the government headquarters, the disappointed Dioki workers dispersed saying a meeting of the company employees would be held tomorrow at which it would be decided that as of 1 July Dioki employees should not be coming to work.

Dioki representatives warned about potential hazards for the entire area in Zagreb's industrial zone, where Dioki is located, given that explosive fumes are stored in containers and pipes which must be under a constant surveillance of expert staff.