The two biggest share-holders in the Suncani Hvar hotel company -- the Croatian Privatisation Fund (HFP) and the Orco Property Gorup -- have signed an agreement regulating the reduction of the Hvar-headquartered company's liabilities and debts by HRK 41.21 million through the transformation of claims into the capital stock shares. The deal, signed on Tuesday, also provides for a new HRK 19.9 million loan to be given by the Privatisation Fund which will be in proportion to the existing loans from the Luxembourg-based Orco Group.
The HFP and Orco issued a statement on the Zagreb Stock Exchange on Wednesday informing about the agreement they reached a day before. The Suncani Hvar management also issued a press release through the ZSE welcoming the agreement and pledging to see to it that Suncani Hvar will have a successful tourist season this year.
Also, the Privatisation Fund, which holds a 32-percent interest in Suncani Hvar, and Orco with a 55-percent stake have also undertaken to write off the sum of HRK 22.2 million resulting from interest rates on loans they have given to the biggest hotel company on the southern Croatian island of Hvar.
This will facilitate the efforts of Suncani Hvar to regulate its relations with lending banks, and to meet its obligations towards employees.
An independent committee will be set up to analyse the outstanding issues between the HFP and Orco.
Under the new agreement, as of now the HFP will have one representative sitting on the management board of the Suncani Hvar.
The agreement was signed by Croatian Agriculture Minister Petar Cobankovic, who is the chairman of the HFP steering board, HFP President Iva Galic and Orco Property Group Deputy Chief Executive Officer Nicolas Tommasini at the Croatian Ministry of Agriculture, Fisheries and Rural Development in Zagreb on Tuesday.
