Badel 1862 d.d. is surprised by the negative response from the Ministry of Finance, Central Office of the Customs Administration regarding the submitted Request for withdrawal of the enforcement decision and unblocking of the accounts of Badel 1862 d.d., the company reports.
Badel 1862 d.d. emphasizes that they were pleased to receive the news of the Decision of the Government of the Republic of Croatia, dated November 8, 2012, on the sale of shares of Badel 1862 d.d. through the collection of binding offers, which ensures the successful completion of the overall restructuring of the company.
Unfortunately, the successful completion of the financial restructuring and the completion of the sale of shares of Badel 1862 d.d. has been called into question by the blocking of the accounts of Badel 1862 d.d. by the Central Office of the Customs Administration, which initiated the forced collection of Badel’s excise debt. Despite objections and appeals, as well as proposals made by Badel 1862 d.d. aimed at resolving the issue and withdrawing the decision on the blockade and forced collection, the response from the Ministry of Finance, Central Office of the Customs Administration, is that the Company is referred to act in accordance with the Law on Financial Operations and Pre-Bankruptcy Settlement, and the submitted request for unblocking the account is not accepted.
-We are extremely surprised by the position of the Ministry of Finance, Central Office of the Customs Administration, which does not accept our request but refers us to pre-bankruptcy settlement, especially in light of the fact that it is clearly visible in the reasoning of the Decision of the Government of the Republic of Croatia on the sale of shares through the collection of binding offers that the adoption of the Decision was preceded by positive opinions received from the State Office for Management of State Property, the Ministry of Economy, the Legislative Office, and the Ministry of Finance itself, say from Badel 1962.
The Decision of the Government of the Republic of Croatia on the sale of shares of Badel 1862 d.d. through the collection of binding offers was preceded by the preparation of the document “Analysis of the Causes of Capital Inadequacy and Illiquidity and Proposal of Measures for Their Elimination” which Badel 1862 d.d. prepared immediately after the Law on Financial Operations and Pre-Bankruptcy Settlement came into force on October 1, 2012. The document established that the Company operates under conditions of capital inadequacy, while, according to the state of the business books, regarding liquidity, the Company does not meet the conditions for declaring illiquidity, although it operates under conditions of difficulty in meeting its obligations.
The Management informed the Supervisory Board of the Company about the established fact of operating under conditions of capital inadequacy and, in accordance with the deadlines and obligations prescribed by the Law on Financial Operations and Pre-Bankruptcy Settlement, on November 2, 2012, submitted to the Supervisory Board the “Analysis of the Causes of Capital Inadequacy and Illiquidity and Proposal of Measures for Their Elimination”.
Considering the fact that Badel 1862 d.d. is a commercial company in majority ownership of the Republic of Croatia, and that there is currently an ongoing process of selling the shares of the Company owned by the state conducted by the Agency for Management of State Property (AUDIO), the Supervisory Board of the Company informed AUDIO about the Company’s operations under conditions of capital inadequacy as well as about the received proposal of measures for achieving capital adequacy.
AUDIO, in its letter dated November 9, 2012, accepting the Decision of the Government of the Republic of Croatia, suggested to the Supervisory Board that when preparing an opinion on the submitted measures, it should refer the Management of the Company to prepare a new proposal of measures for achieving capital adequacy, which proposal will be composed in accordance with the conditions contained in the Decision of the Government of the Republic of Croatia on the sale of shares, all in order to make decisions that ensure long-term stable operations in the interest of the Company.
Unfortunately, just before the Government meeting at which the Decision on the sale of shares was made, the Ministry of Finance, Customs Administration, Customs Office Zagreb, initiated the forced collection of the Company’s excise debt, which led to the blocking of the accounts of Badel 1862 d.d.
-Although we do not dispute the existence of the excise debt, we want to clearly emphasize that in the initiated enforcement procedure within our submissions, we presented some specific circumstances in which the Company finds itself, and at the same time proposed a way to settle the excise debt, to which proposal the Customs Administration did not respond in its enforcement decisions-, they say.
