Constructor? Acquired the Company PGM Ragusa

Co-owners and members of the Management Board of the Dubrovnik construction company “PGM Ragusa” Jakov Terzić, Luka Mihaljević, and Vinko Pejić transferred the management rights of PGM without any compensation based on 58 percent of their shareholding to the Split company “Constructor”.

This company has already dismissed the previous CEO Marinko Benić and appointed Goran Pavić as the acting CEO, who will assume office on Tuesday, August 17. The takeover has been confirmed by all co-owners, but no one has said a word about the still unknown conditions.

– This is private property that everyone decides on individually. The only salvation for PGM is in the takeover by a strong company that has capital, knowledge, vision, and market position. It can work wonders, and I am of an age where I have nothing to seek, so I have also relinquished my rights. Everything else is “I’m telling you a story.” We did not consult the majority individual shareholder Ivan Kralj because there was no need, nor did “Constructor” request it. This is a tragicomic situation: the subsidiary company “GP Dubrovnik” is in bankruptcy, but even such a “dead” company is stronger than all the builders in southern Croatia. PGM will return to its desired positions with “Constructor’s” business plan – Mihaljević speaks optimistically.

Kralj, the largest co-owner with 30 percent of the shares, openly states that the cause of the “coup” in PGM is the reckoning with him and the dissatisfaction of the other co-owners with Benić as the CEO. – Their motive is the ambitions of the leadership of the company that is ‘number 1’ in construction in southern Croatia. However, the business results over the last two years do not favor them. The subsidiary companies “GP Dubrovnik” and “Glavice Opuzen” are already in bankruptcy, which will not positively reflect on the takeover: the bankruptcies are far advanced, although there are indications that arbitration will rule in favor of Glavice. The poor condition of GP was contributed to in 2009 by Mihaljević as the CEO of GP, whom he dismantled and led to bankruptcy – said Kralj.
Creditor Jambo

– If “Constructor” remains, only then does PGM have no chance of survival! Because PGM has already managed to balance its relations with business banks and has agreed to sell part of its assets to settle with the banks. It is impossible to control all creditors, and the largest creditor Stipe Gabrić Jambo has agreed to a settlement and is now insisting on the return of 11.250 million euros in debt with interest. By the reckless decision to transfer management rights to “Constructor”, the three co-owners have changed everything fundamentally and I assert that PGM has no chance of survival, because by the end of 2010, PGM, which generated 600 million kuna in revenue last year and in 2008 with a thousand employees, will meet the fate of GP and Glavice – concluded Kralj, asserting that “Constructor” at the opening of GP’s bankruptcy “waved plans for takeover and recovery, but did nothing to save the company.”(www.slobodnadalmacija.hr)