The claims amount to HRK 278.4 million and stem from collateral and unpaid liabilities.
The capital stock in the company will now grow from HRK 569 million to 847.4 million.
The government also gave its consent for increasing the equity of Croatia Airlines (CA) from HRK 197.8 million to HRK 277.8 million by issuing new shares.
Transport Minister Sinisa Hajdas Doncic said the recapitalisation of CA by turning the debt into capital was part of the restructuring plan.
The government also gave its consent to CA to borrow EUR 1.35 million at Privredna Banka Zagreb to finance restructuring costs. The minister said the money would be used to provided for surplus labour.
(EUR 1 = HRK 7.63)