The Municipal Court in Zenica has formally opened bankruptcy proceedings against Bosnia and Herzegovina-based steelmaker Nova Željezara Zenica, according to media reports. The court has invited creditors to submit their claims within 30 days of publication of the decision in the Official Gazette of the Federation of Bosnia and Herzegovina.
Nova Željezara Zenica originally filed for bankruptcy on December 17, 2025. Earlier this year, both the Municipal Court and the Cantonal Court in Zenica rejected a proposal by the government of the Federation of Bosnia and Herzegovina to introduce emergency administration at the company.
Company says bankruptcy will be used for restructuring
Nova Željezara Zenica's management stated that it does not view bankruptcy as the end of the company, but as a mechanism for restructuring operations, addressing accumulated liabilities and creating a sustainable operating model.
The company said employee rights would be respected in accordance with its agreement with the trade union and applicable legislation. Management had previously reached an agreement regarding severance payments for employees classified as redundant.
Regarding future steelmaking operations, the company said it intends to focus on electric arc furnace-based steel production, rather than returning to its previous integrated steelmaking model.
Integrated steel production already halted
The company's integrated steel production had already been halted following the shutdown of its blast furnace, sinter plant and steelmaking shop. During the earlier pre-bankruptcy proceedings, the temporary administrator stated that a complete reorganization and the discontinuation of integrated steel production would be required for operations to continue.
The suspension of steel production at the company has already disrupted regional industrial supply chains, affecting rail transport, port activity and downstream manufacturing sectors across Southeast Europe, as SteelOrbis previously reported.
Management has also outlined a longer-term plan to transform the Zenica site into a modern industrial and logistics park, alongside the restructuring of steel production, with a focus on modern technologies, green energy and sustainable operations.
