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TWO BANKS POSSIBLE OWNERS OF OVERINDEBTED PRESS DISTRIBUTOR

ZAGREB, Jan 22 (Hina) - Privredna Banka Zagreb and Hrvatska Postanska Banka will become the majority owners of "Tisak", Croatia's largest press distributing company, "Tisak's" head of administration Chris Bojanovic announced on Friday. An agreement in principle, reached on Thursday, should be confirmed on Monday, January 25, at a meeting publishers, "Tisak", and the banks are to hold with Premier Zlatko Matesa, Bojanovic told a meeting with publishers' representatives. He said negotiations were in course with yet another bank, but did not say which one. The overindebted "Tisak" has through irregular payment of sold press brought Croatia's newspapers and magazines in a very serious financial situation, which brought into question the further publishing of most Croatian press. "Tisak's" and publishers' representatives agreed "Tisak" should undergo financial rehabilitation by making the company
ZAGREB, Jan 22 (Hina) - Privredna Banka Zagreb and Hrvatska Postanska Banka will become the majority owners of "Tisak", Croatia's largest press distributing company, "Tisak's" head of administration Chris Bojanovic announced on Friday. An agreement in principle, reached on Thursday, should be confirmed on Monday, January 25, at a meeting publishers, "Tisak", and the banks are to hold with Premier Zlatko Matesa, Bojanovic told a meeting with publishers' representatives. He said negotiations were in course with yet another bank, but did not say which one. The overindebted "Tisak" has through irregular payment of sold press brought Croatia's newspapers and magazines in a very serious financial situation, which brought into question the further publishing of most Croatian press. "Tisak's" and publishers' representatives agreed "Tisak" should undergo financial rehabilitation by making the company's creditors its owners and by enabling "Tisak" to pay out its debts to newspapers and magazines. "Tisak's debt includes US$60 million to a dozen banks, US$15.8 million to publishers, and over US$3 million to the tobacco industry. In case Hrvatska Postanska Banka and Privredna Banka Zagreb become the majority owners of "Tisak", other bank-creditors will, according to Bojanovic, agree to re-programme the debt. The banks' condition is share in at least 80 percent of "Tisak's" stocks. All going as planned, "Tisak" would pay 50 percent of its debt to publishers within a week of a final decision on the company's fate, while the whole debt would be settled within a month. Bojanovic however said that not all banks had so far given their opinion about the financial rehabilitation plan, which, he added, raises the question whether the banks will agree to the said deadlines. Earlier this week, publishers gave "Tisak" an ultimatum demanding that the debts be paid by January 25, in order to enable the publishers to pay their own debts to printers. Due to the announced possibility of "Tisak" rehabilitation, the publishers expressed willingness to extend the deadlines, in the hope that the printers would extend theirs too. (hina) ha jn

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