Industrogradnja on Tuesday issued a statement on the Zagreb Stock Exchange rejecting reports that bankruptcy or preliminary bankruptcy proceedings have been launched against the company.
The statement, however, confirms information that the company's account has been frozen due to its debt towards the Croatian government.
Industrogradnja says in the statement that its claims from the government are roughly the same or even greater than its liabilities towards the state.
All of this has been confirmed by the finance ministry and by an agreement signed by two government ministers, reads the statement.
Upon the conclusion of the agreement, Industrogradnja put parts of its real estate under encumbrance to ensure that the government may collect its claims from the company, if necessary.
The company says in the statement that it has not yet received any answer as to why the exact amount of what is owed to the company and what the company owes to the state has not been determined, even though the agreement stipulates determination of the clearance.
The company says that the value of its property exceeds several times the company's debts and liabilities to other creditors.
It also dismisses as malicious and incorrect claims that people who have bought flats built by Industrogradnja are at risk of their ownership being challenged.