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Two holding companies ready for new talks with government in Liburnia Riviera case

ZAGREB, Aug 18 (Hina) - SN Holding and DOM Holding companies are readyto start talks with the Croatian government on a new agreement underwhich they would return a control stock in the Liburnia Riviera hotelchain to the state and collect their claims towards the state, amember of the DOM Holding management board, Darko Ostoja, toldreporters in Zagreb on Thursday.
ZAGREB, Aug 18 (Hina) - SN Holding and DOM Holding companies are ready to start talks with the Croatian government on a new agreement under which they would return a control stock in the Liburnia Riviera hotel chain to the state and collect their claims towards the state, a member of the DOM Holding management board, Darko Ostoja, told reporters in Zagreb on Thursday.

Both holding companies support a request made on Wednesday by the Chief State Prosecutor that the police investigate the circumstances under which the agreement on the take-over of a majority stock in the hotel chain was signed between the Croatian Privatisation Fund (HFP) and the two holding companies, Ostoja and the companies' attorney, Tin Dolicki, said.

Ostoja urged publishing the report with police findings, which he said "many will not be happy about".

Ostoja said that the first option of the two companies in the new talks with the state was to collect their claims in cash. The claims amount to more than 1.2 billion kuna.

"If the state cannot pay the claims, we will talk about what it can offer," Ostoja said.

The new agreement with the government can be concluded very soon and the shares of the Liburnia Riviera hotel chain can be returned to the state, but only after the remaining seven percent of the hotel company's shares are taken over, Ostoja said.

The two holding companies must submit their offer for the take over of those shares very soon, because under the existing contentious agreement they hold a majority stock in the hotel chain, Ostoja said.

If the two holding companies acquire several more percent of shares in Liburnia Riviera, this means that the state will have to pay them slightly more than what their current claims amount to, if it wants to claim back the entire stock of the two companies.

Commenting on the Chief State Prosecutor's statement that the agreement between the HFP and the two holding companies had not been approved by his office, attorney Dolicki said that this was not true.

He then read out excerpts of two letters from the Office of the Chief State Prosecutor to the HFP giving a positive opinion about the draft agreement.

That is why in terms of law the initial agreement cannot be annulled, but a new one has to be negotiated, Dolicki said.

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