The Petrokemija shareholders' General Assembly on Monday decided to cover last year's loss of the Kutina-based artificial fertiliser producer and to increase the company's share capital to up to 450 million kuna (€60.7 million) through cash payments and issuing new shares.

The decisions made at the General Assembly have created conditions for the final stage of the implementation of the company’s restructuring programme, as well as the legal framework of Petrokemija’s recapitalisation, the company said in a press release.

The decision on simplified reduction of the company share capital by merging shares to cover losses in the amount of 242.6 million kuna (€32.7 million) incurred in 2017, and transfer of funds in the amount of 150 million kuna (€20.2 million) to capital reserves was okayed by the assembly.

In late May this year, the management of the INA oil company decided that INA would take part in the recapitalisation of the Kutina-based artificial fertiliser manufacturer Petrokemija.

INA had said that it was willing to participate in Petrokemija’s recapitalisation with 150 million (€20.2 million).

Petrokemija’s shareholders in mid-January decided to launch a recapitalisation process in order to collect 450 million kuna (€60.7 million).

Also in May, the Croatian government decided to buy 450 million kuna (€60.7 million) worth of banks’ claims against Petrokemija.

Petrokemija is the main producer of mineral fertiliser in the country. The state share in Petrokemija’s ownership structure is 79.85 percent, and its annual turnover amounts to some 2 billion kuna (€270.5 million).

(€1 = 7.4 kuna)

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