The Zagreb Trade Court has started a hearing to determine if Radio 101 is ripe enough for bankruptcy, which is the most likely scenario. Even if the Radio 101 employees that filed for bankruptcy were paid in full, bankruptcy is not likely to be avoided.
The radio station has faced a number of financial problems over the past year, with the managing board failing to paying taxes and workers’ social security contributions. The number of employees at the station was cut in half in 2010, and those who have remained haven't been paid their past six montly wages.
Reportedly, the total asset value of Radio 101 is not more than 1.5 million kuna (about euro 200,000), whilst the debt is consider to be as high as 20,000,000 kuna (almost euro 3m). As part of the bankruptcy procedure, the current management will be replaced by a bankruptcy manager, the owner’s assembly will be dissolved and all employees will be sacked.
As far as the program is concerned, Radio 101 should continue broadcasting in one form or another for the next month or two.
Radio 101 was one of the most important independent media in Croatia in 90ies, especially known for a tide changing mass rally on the Zagreb’s central square in 1996, organized in support to the radio after the radio's broadcast licence had been revoked by politically motivated decision.
