Deal on Suncani Hvar to be disclosed on Tuesday

[Suncani Hvar Troubles]

A meeting was held on Monday at the Croatian Privatization Fund, at which the representatives of the Government, the Fund, the ORCO Group and the Church tried to find a solution for the newly arisen privatization scandal about the Suncani Hvar tourist resort from Hvar.

The Hvar mayor Pjerino Bebic and the vice-president of the Government Damir Polancec pointed out after the meeting that an agreement was reached about the future of the Suncani Hvar in terms of ownership.

They said that the ownership structure, in which the Government has thirty-five percent of share and the ORCO Group from Luxembourg forty-seven per cent of share, will not significantly change.

The Government will disclose on Tuesday the details about the public-private partnership in the Suncani Hvar.

  I haven't got a clue what is this all about  

[Ante]

A meeting was held on Monday at the Croatian Privatization Fund, at which the representatives of the Government, the Fund, the ORCO Group and the Church tried to find a solution for the newly arisen privatization scandal about the Suncani Hvar tourist resort from Hvar.

The Hvar mayor Pjerino Bebic and the vice-president of the Government Damir Polancec pointed out after the meeting that an agreement was reached about the future of the Suncani Hvar in terms of ownership.

They said that the ownership structure, in which the Government has thirty-five percent of share and the ORCO Group from Luxembourg forty-seven per cent of share, will not significantly change.

The Government will disclose on Tuesday the details about the public-private partnership in the Suncani Hvar.

  I haven't got a clue what is this all about  

 
Town of Hvar against one-sided refinancing of Suncani Hvar

The Town Hall of Hvar warns in its today's statement that the recently made decision of the Orco Group from Luxembourg to refinance the ?Suncani Hvar? company will radically change the ownership relations to the benefit of the Orco Group and shake the foundations of the public-private partnership in the ?Suncani Hvar?.

In that respect the statement signed by Hvar Mayor Pjerino Bebic underlines that the Town Hall requested from the Government to increase its shareholder's equity, but that no answer has been received so far.
 

[Ante]

Government To Hand over Control Package to Hvar

The state and the city of Hvar are to take part in the broadening of the capital base of Suncani Hvar, it was decided at Banski Dvori on Tuesday.

At Tuesday morning?s meeting, the government accepted the proposal of the Hvar town leaders, so that the government will turn over the control package of 25 percent plus one share package of Suncani Hvar on condition of them waiving all claims and that they invest some 15 million kuna into Suncani Hvar.

[Suncani Hvar4]

Government Discusses :
At it?s Thursday session, the government has officially decided to transfer 25 percent plus one share to the town of Hvar, thus allowing the active role of the local community in making strategic decision on the future of this tourist company.

[More Troubles]

Denationalization of Suncani Hvar?

Twelve families from Hvar have been struggling for more than ten years that their property, facilities and land that was taken from them after the WW2, on which most of the Suncani Hvar hotel resort is located, be denationalized. As early as 1994, the Croatian Privatization Fund established that ownership relations were not determined in about fourteen per cent of the total value of the hotel complex. So far, the Hvar families have not received and compensation. Given that it is technically impossible that they get back their facilities, they would settle for getting money or shares in the company. They find unacceptable the Fund?s proposal that they get counter-value in the shares of some other companies.

[First Round]

First Round of Suncani Hvar Capital Base Broadening Completed

The first round of subscription of shares for the broadening of the capital base of Suncani Hvar ended on Tuesday.

According to unofficial figures, some 30 million kuna had been paid in the name of the state by the Croatian
Privatisation Fund and the State Agency for Deposit Insurance and Bank Rehabilitation.

The payment was made by the Orco group in line with its 47.4 percent ownership.

Out of the 2,200 shareholders some 1,500 had paid in.

The second round of shares? subscription begins on Thursday mainly for small shareholders.

After this the conditions will be created for the city of Hvar to become the owner of 25 percent plus a single share of Suncani Hvar.

[Peter]

Despite the Government decision in January, the City of Hvar has yet to sign the ownership contract for a control-share packet in the Suncani Hvar Hotel complex.
Relations between the Government and Hvar are frayed after Hvar Mayor Pjerino Bebic claimed that the Government was preparing a new proposal where Hvar would not own shares but be given a tourist settlement instead.
Bebic said he refused to accept the exchange of shares in the hotel complex for real estate belonging to the Sirena tourist settlement.
Bebic is accusing the Government of intentionally going back on its promise to enable the Orca group majority ownership in a Hvar-based company.
The citizens of Hvar find such trading unacceptable, Bebic stressed.
source: www.hrt.hr

[Peter]

Charges Filed against the Government and Orco Group

A group of Hvar residents, current and former employees of Suncani Hvar, as well as organisations representing the original owners have filed charges against the government, the Croatian Privatisation Fund and Orco Group.
The original owners have also filed criminal charges against Suncani Hvar for stealing real-estate.
They claim that Suncani Hvar is not a case of public private partnership, but a case of privatisation using illegal broadening of the capital base.
They are calling on the mayor Pjerino Bebic to immediately call a public gathering of citizens which will call on the government to annul all the damaging and illegal contracts with Orco Group.

source : hrt.hr

[NewsReader]

Orco Property Group seeks suspension in shares trading

The Suncani Hvar d.d. hotel company has submitted a request to suspend all trading in its shares at the Zagreb Stock Exchange.
The move came after the company?s majority owner, the Orco Property Group, suspended trading in its financial instruments at several European stock exchanges and it is believed that this might result in the manipulation of shares on the Zagreb Stock Exchange.
The Luxembourg-based company has also postponed issuing its annual report for the end of March and has announced that it will be reviewing its strategic options.

[SunFun]

Government Holding on to the Suncani Hvar Shares

The government has decided to scrap the decision on the transfer of 25 percent plus a single share of the Suncani Hvar d.d. shares to the town of Hvar.

It now remains to be seen whether the referendum sought by the locals is at all necessary, as they should put forth their views on whether they want the town to refrain from the demand to be given 25 percent plus a single share of the Suncani Hvar d.d. company in exchange for the ownership of Sirena d.d. company.

[Foggy]

Developer Orco posts a 390 mln euro loss in 2008

PRAGUE, April 8 (Reuters) - Developer Orco Property Group (ORCO.PA) (ORCOsp.PR) posted a net loss of 390.6 million euros ($515.2 million) for 2008 due to a drop in asset value, the firm said late on Tuesday.

http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSL86657620090408

[TravelGirl]

No Referendum for Suncani Hvar

The Hvar city council has rejected the request by a group of locals for a referendum to be held on the handing over of 25 percent plus one share of the Suncani Hvar company to Hvar.

The councillors voted against the holding of the referendum by a majority vote.

hrt.hr

[Mario]

Hotel company Suncani Hvar chief Jacques Bourgeois has been dismissed after four years in his position.

The daily Slobodna Dalmacija has reported that Bourgeois was dismissed because of extremely bad business results.

According to the daily, the company?s supervisory board will officially confirm the news today (Fri). Bourgeois will be succeeded by Miro Dincic from Zagreb, who has international experience in tourism.

Suncani Hvar is majority owned by the Orco Property Group. Dincic was reportedly once an Orco employee but left the company after a disagreement with company management on Hvar Island.

Suncani Hvar has had financial problems for some time and suffered a big decline in overnights and turnover this year. (www.croatiantimes.com)

[Peter]

The latest opinion about privatisation of some croatian hotels is here 

http://www.find-croatia.com/blog/privatisation-of-hotels-in-croatia/