Deripaska company to sack 2,300 in Montenegro

Russian billionaire Oleg Deripaska's En Group reached an agreement with the Montenegrin government for making 2,300 workers redundant. The workers being let go come from the Podgorica-based KAP aluminum plant and a bauxite mine located in Niksic, in the north of the country. Deripaska company to sack 2,300 in Montenegro Currently, both companies employ more than 3,900 workers. The agreement, which determines the future of the Montenegrin companies, was signed by En Group Director Michael Nosal and Montenegrin Economy Minister Branko Vujevic. “The Montenegrin government will give state guarantees until December 31, 2009, for the remaining and future debts of KAP, worth more up to EUR 135mn,” according to a statement. “With the state guarantees, there will be funds secured that will enable KAP and the Niksic-based company to regulate their debts to creditors, and to finance social programs for the 2,300 that will be made redundant, and to increase capital turn-around,” a statement from the En Group explained. The En Group will give the government half of its shares in the two companies and give itself the right to buy them back if the company desires to. "A new formula for the electricity prices for KAP" has also been agreed on, reports said. EN Group and the Montenegrin government have agreed on a continuation of the investment program for KAP, which is expected to be worth EUR 39mn in the next five years. It was agreed that the EN Group and government will pull their charges filed to international courts and reject other loan pretensions.

Deripaska company to sack 2,300 in Montenegro

Currently, both companies employ more than 3,900 workers.

The agreement, which determines the future of the Montenegrin companies, was signed by En Group Director Michael Nosal and Montenegrin Economy Minister Branko Vujević.

“The Montenegrin government will give state guarantees until December 31, 2009, for the remaining and future debts of KAP, worth more up to EUR 135mn,” according to a statement.

“With the state guarantees, there will be funds secured that will enable KAP and the Nikšić-based company to regulate their debts to creditors, and to finance social programs for the 2,300 that will be made redundant, and to increase capital turn-around,” a statement from the En Group explained.

The En Group will give the government half of its shares in the two companies and give itself the right to buy them back if the company desires to.

"A new formula for the electricity prices for KAP" has also been agreed on, reports said.

EN Group and the Montenegrin government have agreed on a continuation of the investment program for KAP, which is expected to be worth EUR 39mn in the next five years.

It was agreed that the EN Group and government will pull their charges filed to international courts and reject other loan pretensions.