"I have heard good news about plans for this tourist season and good news about plans for the next year," Kosor told reporters after the talks with the management.
The premier expressed satisfaction with the fact that "a formula" had been found for pulling this ailing company from difficulties and gave credit for that to former Croatian Privatisation Fund, which has been in the meantime incorporated in the AUDIO state property agency.
"In the coming months we will solve Suncani Hvar difficulties step by step and I believe that all the problems will be solved," Kosor said.
In response to reporters' questions whether her Cabinet was under pressure over the Suncani Hvar given that the Orco Property Group board chairman, Jean Francois Ott, threatened to raise the issue to international levels after which "idyllic" relations ensued among the two main shareholder -- the Orco group and the government -- PM Kosor referred reporters to Deputy Prime Minister and Agriculture Minister Petar Cobankovic who was in charge of dealing with Suncani Hvar issues.
Kosor said that she absolutely trusted Minister Cobankovic and that he always did the job he was tasked with.
Kosor added that there was only business interest and that Croatia's interest was to see to it that tourism on Hvar boomed.
She expressed hope that this season would be better than the tourist season in 2010 recalling that the government's efforts and money it invested into the preparations for the forthcoming season were guarantees for success.
The premier also held talks with Hvar Mayor Pjerino Bebic about the Suncani Hvar. The mayor said that he was extremely satisfied with PM Kosor's visit to Hvar in light of the fact that her predecessor Ivo Sanader had never come to the island to discuss the said company's problems. He added that those problems were now being solved.
In mid-March, the two biggest share-holders in the Suncani Hvar -- the Croatian Privatisation Fund (HFP) and the Orco Property Group -- 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 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 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.
On 5 April, Ott told a news conference in Zagreb that he was satisfied with the agreement, adding that Orco group would continue investing in Suncani Hvar but only after property rights disputes with the town of Hvar and the Church were settled,
Kosor today held talks with local bishop, Msgr. Slobodan Stambuk, but refuted speculations that one of topics of their talks was the Suncani Hvar company. "When I am in Hvar, it appropriate of me to briefly meet Msgr. Stambuk," Kosor said commenting on her meeting with the dignitary.