Govt Confirms EUR 6M Capital Injection for Peko

Ljubljana, 29 December (STA) - The government confirmed on Thursday a

EUR 6m capital injection for the state-owned footwear maker Peko, which is

to be executed if the company finds a private investor and strikes a deal

by the end of February with creditor banks to extend at least EUR 1.6m of

Peko's short-term debt for at least three years.

A further condition for Peko to receive the injection is a three-year

money-flow plan of the group which must be confirmed by the Capital Assets

Management Agency (AUKN), according to the cabinet's press

release.

Last week's unofficial information meanwhile indicated that

Peko was to get EUR 6m by the end of the year, and another EUR 6m in

instalments next year under the condition of a successful

restructuring.

If Peko fails to find a private investor by 28

February, AUKN will be tasked to redeem the EUR 6m and return it to the

state budget.

AUKN must supplement the company's restructuring plan,

which was presented to the government in mid-December, with a number of

comprehensive analyses by 20 February and an exit strategy if no private

partner is found to take over the state's investment.