Buyers line up for Montenegro's bankrupt aluminum plant and biggest exporter

Buyers line up for Montenegro's bankrupt aluminum plant and biggest exporter

The country is also receiving bids for oil exploration and drilling rights for oil and natural gas off its southern Adriatic coast.

At least four companies have placed bids to buy assets of Montenegro's Kombinat Aluminijuma Podgorica (KAP) aluminum plant, the country’s top exporter that declared bankruptcy in October last year.

The proceeds will be used to repay the firm's $516 million debt —an amount that, according to Reuters, equals 10% of the Balkan country's economic output.

The interested firms are London-based Getsales, Montenegro-based Uniprom and Politropus Alternative, and Srbian Alemani Trade.

Getsales offered almost $7,000 for KAP's main production facilities outside the capital Podgorica and vowed to invest around $960 million.

Montenegrin Uniprom offered $39 million for a big portion of KAP’s assets, while fellow company Politropus Alternative, offered $615,000 for a smaller share. The Serbian firm, reports Reuters, offered $243,000 for 22 plant wagons.

Since bankruptcy proceedings began last year, KAP, now under direct government control, has stopped disclosing financial information.

Montenegro, a nation with a population slightly over 620,000, recently opened bids for oil exploration and drilling rights for oil and natural gas off its southern Adriatic coast. The tender offers the exploration of 13 blocks, covering an area of 3000 square kilometres. They will be awarded for 30 years.

The country, which became independent in 2006, doesn’t produce any oil at the moment, but initial data suggests the nation might one day have enough resources to cover its oil and gas demand.

Deadline for potential bidders was extended yesterday from Feb. 28 to May 16.