SPLIT, Oct 11 (Hina) - The government wrapped its session in the southern Adriatic city of Split on Thursday by passing a decision on a 30 million kuna (approx. $3.6 million) recapitalisation of the Slobodna Dalmacija daily. If the
recapitalisation project fails, the daily will have to file for bankruptcy, said Economy Minister Goranko Fizulic. The Split-based daily's loss amounts to approximately 83 million kuna, the value of its stock capital. Under the decision, the Croatian Privatisation Fund (HFP) will recapitalise the daily with 30 million kuna. The newspaper is obliged to reach an agreement with creditors reducing all claims to less than 90 million, settle with small shareholders, and obtain a bank's letter of intent granting a 60 million kuna loan. If the recapitalisation succeeds, the government will acquire a 98 percent controlling interest in Slobodna Dalmacija, while the HFP will gi
SPLIT, Oct 11 (Hina) - The government wrapped its session in the
southern Adriatic city of Split on Thursday by passing a decision on
a 30 million kuna (approx. $3.6 million) recapitalisation of the
Slobodna Dalmacija daily.
If the recapitalisation project fails, the daily will have to file
for bankruptcy, said Economy Minister Goranko Fizulic.
The Split-based daily's loss amounts to approximately 83 million
kuna, the value of its stock capital. Under the decision, the
Croatian Privatisation Fund (HFP) will recapitalise the daily with
30 million kuna. The newspaper is obliged to reach an agreement with
creditors reducing all claims to less than 90 million, settle with
small shareholders, and obtain a bank's letter of intent granting a
60 million kuna loan.
If the recapitalisation succeeds, the government will acquire a 98
percent controlling interest in Slobodna Dalmacija, while the HFP
will give some shares to small shareholders as indemnity.
The ultimate goal is for the daily to find, in agreement with the
government, a strategic partner that will invest in the newspaper's
technological renovation and put an end to years of business
losses, despite the fact that it is the only Croatian daily whose
circulation is increasing.
The government did not put on the agenda United States corporation
AFCO's investing in the building of hotels along the Split
coastline. The project was presented by Split Mayor Ivan Skaric and
his associates. The press was not present.
As announced yesterday, the local branch of the HVIDR-a, disabled
war veterans' association, organised a peaceful rally in front of
the city authorities' building, with around 300 protesters who then
left for Vila Dalmacija, where the government session was taking
place.
The protesters carried banners and shouted slogans against the
authorities, calling them "thieves" and "the red gang". Police
stopped them 200 m before the villa. The protest ended without
incidents.
HVIDR-a president Andrija Bartulic said protesters would show "who
they are and who the Croatian people are" at an Oct. 20 rally in
Zagreb. The protesters then dispersed singing Ustasha songs and
slogans.
($1 = 8.3 kuna)
(hina) ha sb