Of this amount, four percent is intended for the company's employees.
The assembly's decision makes it possible for the Suncani Hvar management to open negotiations on resolving the property-related issues with the town, the Church, the HFP and DAB, and on removing problems in Suncani Hvar business activities, the HFP chairman Vedran Duvnjak said today.
He said that this did not mean that the company's real estate would be sold but that the management was given a possibility to use an annex of the Dalmacija Hotel and the Sirena complex under strict terms and conditions.
This should also facilitate a comprehensive and viable solution that should enable recovery of this ailing company, and should avert the initiation of bankruptcy procedure, according to Duvnjak.
He recalled that the government and the Orco Group had agreed on public private partnership in Suncani Hvar four years ago with the aim of transforming the island town of Hvar into an elite tourist destination.
However, such plans have failed and poor financial results show that some management decisions by the Orco Group turned to be bad, he said.
The Luxembourg-based Orco Property Group S.A. holds 55.55 percent of the Suncani Hvar stock. It recently reported financial problems in other companies in its possession in Europe.
Orco's regional manager in Croatia, Dragan Lazukic, said today that the assembly's decision was actually an act of acceding to a proposal put forward by Deputy Prime Minister Damir Polancec.
The implementation of the latest decisions will depend on the HFP, the Town of Hvar and the Church, Lazukic said, adding that he expected them to approve the transfer.
However, Polancec's proposal recently sparked differing reactions from interested parties.