Namely, when the financial leverage is stretched to the maximum, or when there is no room for further borrowing, in order for the company to continue developing or at least not worsen the situation, only recapitalization remains.
There are more and more business owners in Croatia who, pressed by the impossibility of borrowing, see only one way out in recapitalization. Many owners are unpleasantly surprised by the ownership share that an investor willing to recapitalize the company demands. However, the wiser ones agree to these terms as their negotiating position worsens every day. I am looking for a partner for recapitalization. It will not be at all strange if such an ad appears soon. Recently, among the most sought-after targets are investors ready to recapitalize some smaller or more or less struggling companies. Candidates eager for fresh money are, admittedly, becoming less attractive, but they are very active. The reason is very simple; all other models are either riskier or already exhausted. More about forced recapitalizations in the topic of the week signed by Matilda Bačelić.
The government announced the sale of stakes in companies where it holds less than 25 percent ownership as part of its economic program. Although recent information from a government meeting mentioned 394 companies without naming them, according to the list of companies exclusively obtained by the business weekly Leader, the actual number is 355 companies, which, according to the Croatian Privatization Fund’s estimates, are nominally worth 884 million kuna.
In Slavonia, not a single agricultural plot has been sold this year. It is no better in Dalmatia, where even the sale of agricultural land for conversion to construction has stopped. The drop in real estate prices has also affected agricultural land, so it was expected that this would be an opportunity for those with deeper pockets to start buying land. However, the opposite has actually happened. Learn more in Edis Felić’s story ‘Halved Prices and Sales Confuse Speculative Investors’.
Zvonimir Baletić, one of the first economists to predict the arrival of recession, an academic and former long-time director of the Zagreb Institute of Economics, does not relent in warning the authorities even after 50 years of work. In an interview for Leader, he claims that the Croatian National Bank must be much more active in softening credit policy.
Almost all experts believe that Kerum’s empire is on the brink of bankruptcy and that he will find it difficult to sell his business, especially not for the amount he is asking. His business has been shaken and was the reason for his departure to the position of mayor. Jelena Gotovac and Antonija Knežević reveal to us the background of the shaky foundations of Kerum’s empire.
