A commercial court on Monday opened bankruptcy proceedings against the Montenegrin aluminium plant KAP co-owned by the government and Russian oligarch Oleg Deripaska.
The KAP smelter debt is estimated to owe 386 million euros ($496 million), mostly to foreign banks, including Deutsche Bank, Hungarian OTP bank and Russian VTB bank.
The application for bankruptcy was made by the Montenegrin government, which owns 29.36 percent of the smelter, as much as Deripaska's Central European Aluminium Company (CEAC).
The remaining 41 percent are in hands of small shareholders.
With its 1,200 employees, the Aluminium Company Podgorica (KAP) is the biggest industrial employer in the tiny Adriatic republic of some 660,000 people.
Once Montenegro's biggest exporter, KAP accounted for 4.7 percent of country's economic output in 2012.