Sunny Hvar owes banks 395 million kuna

The total indebtedness of Sunny Hvar to banks currently amounts to 395 million kuna, while the market value of the company’s tangible assets, according to the latest assessment from December 2009, is 900 million kuna. Operations are proceeding smoothly and all hotels are open, Sunny Hvar stated today, reacting to what they describe as inaccurate theses in the media regarding their business.

Stating that it is not true that Sunny Hvar’s indebtedness to banks amounts to 580 million kuna, the company’s management emphasizes that the company’s indebtedness to banks has increased by 290 million kuna over the past five years, and considering that in 2005 the company had 105 million kuna in bank loans, the total indebtedness of the company to banks currently amounts to 395 million kuna. They also add that new borrowings from banks over the past five years have been used exclusively for renovating existing hotels within Sunny Hvar. Regarding the market value of Sunny Hvar’s tangible assets, they emphasize that according to the latest assessment from December 2009, it amounts to 900 million kuna and significantly exceeds the company’s debts.

Acknowledging that Sunny Hvar undoubtedly has liquidity difficulties, the management still believes that the ratio of liabilities to the market value of tangible assets demonstrates the company’s high potential. They also state that Sunny Hvar has regularly paid salaries and responsibly fulfilled obligations to employees since 2005, reminding that the management reached an agreement with the Union and the Workers’ Council during the winter months of this year, which is being fully implemented.

For the number of overnight stays in Sunny Hvar in 2005, they state that it was 284,282, not 500,000 as claimed in some media. The statement emphasizes that the management and employees, despite the termination of the Agreement between the two largest shareholders (HFP and Orco Group), which certainly will not and cannot help the company, are determined to make every effort to ensure a successful tourist season.  (H)