Pre-bankruptcy Settlement Procedures

Pursuant to the Financial Operations and Pre‐bankruptcy Settlement Act (Official Gazette No: 108/12 and 144/12) the following companies majority‐owned by the State (greater than 50%) operating in the tourism sector have submitted proposals for the opening of the pre‐bankruptcy settlement procedures and the situation is the following as at February 10th, 2014:

  1. ZRC Lipik d.d., Lipik – the pre-bankruptcy settlement procedure was suspended and the Proposal for the Commencement of the Bankruptcy Procedure has been submitted to the competent Commercial Court;
  2. Bizovačke toplice d.d., Bizovac - the pre-bankruptcy settlement procedure was suspended; the bankruptcy procedure has commenced;
  3. HTP Korčula d.d., Korčula - the pre-bankruptcy settlement was concluded at the competent Commercial Court;
  4. Hoteli Podgora d.d., Podgora – the Financial Restructure Plan was adopted by the Settlement Council of the Croatian Financial Agency; the hearing relating to the conclusion of the pre-bankruptcy settlement was held at the competent Commercial Court;
  5. Hoteli Živogošće d.d., Živogošće - the pre-bankruptcy settlement procedure was rejected at the competent Commercial Court;
  6. Hotel Medena d.d., Seget Donji – the Financial Restructure Plan was adopted by the Settlement Council of the Croatian Financial Agency;
  7. Vranjica Belvedere d.d., Seget Vranjica – the Financial Restructure Plan was adopted by the Settlement Council of the Croatian Financial Agency;
  8. Hoteli Plat d.d., Plat - the pre-bankruptcy settlement was concluded at the competent Commercial Court;
  9. Dalma d.d., Split - the Financial Restructure Plan was adopted by the Settlement Council of the Croatian Financial Agency;
  10. HOC Bjelolasica d.o.o., Jasenak – the pre-bankruptcy settlement is in progress;
  11. HTP Orebić d.d., Orebić - the pre-bankruptcy settlement was concluded at the competent Commercial Court.

The proposal for the opening of the pre-bankruptcy settlement has been submitted by the company predominantly owned by the Republic of Croatia:

12. Modra Špilja d.d., Komiža - the pre-bankruptcy settlement is in progress; the invitation to potential strategic investors for the inclusion in the procedure has been published at the Company’s website

Pursuant to the provisions of Article 44 of the Financial Operations and Pre‐bankruptcy Settlement Act which foresees the possibility of active involvement of potential investors as strategic partners in the process of implementation of financial and operational measures for companies' restructuring, we invite all potential strategic investors to contact directly the Management Boards of the abovementioned companies in order to jointly examine the options for their participation as strategic partners in the pre‐bankruptcy settlement procedures.

Potential strategic investors are presented with the opportunity to actively participate in the pre‐bankruptcy settlement procedures in a way that, jointly with the Management Boards, seek to define the financial and operational measures for a company’s restructuring as an integral part of the Financial and Operational Restructure Plan which shall be approved by creditors.