Bosnia's Zenica Steel Plant Remains Under State Control After Court Rejects Emergency Administration

The Cantonal Court in Zenica upheld the municipal court's earlier decision and dismissed the appeal by the Federation of Bosnia and Herzegovina and the city of Zenica to place Nova Željezara Zenica under emergency administration. The court ruled that merely being insolvent does not satisfy the legal criteria; the government must also demonstrate public interest, proportionality and a reasonable chance that an emergency manager would achieve better outcomes than ordinary bankruptcy proceedings. It noted that the authorities failed to provide expert analyses or evidence that creditors would be better served.

Premier Nermin Nikšić said the government remains committed to rescuing the plant, despite the setback. He announced a prepared plan to keep production running, including arrangements for iron ore and coke deliveries and the preservation of roughly 1,500 jobs. Budget support for the steel sector has been increased, and the government is considering a purchase offer for the facility, while stressing that the current operations of Bosnia’s railway company are not at risk.