Šola, Paladino and three other members are no longer in the Supervisory Board of Kaba

The General Assembly of Karlovačka banka made decisions regarding the bank’s recapitalization and the new composition of the Supervisory Board, after Ivica Horvat, Goran Vukšić, and Danijel Žamboki, as well as Josip Paladino and Sandi Šola, submitted their resignations, being suspected of siphoning millions from Karlovačka banka.

According to the notifications that Karlovačka banka submitted today to the Zagreb Stock Exchange, the new members of the Supervisory Board are Ivan Vrljić, Ranko Predović, Vedrana Pavelić, and the current member Danijel Žamboki.

At the General Assembly held yesterday, a decision was also made to cover losses carried over from 2010, 2011, and 2012, as well as to recapitalize Karlovačka banka for 20 million kuna.

In the previously published invitation and proposals for the assembly, the carried-over losses from previous years, which total nearly 116 million kuna, will be covered partly from capital gains, amounting to 31.26 million kuna, and partly by reducing the share capital by 84.5 million kuna. The reduction of the share capital of Karlovačka banka, from the current 171.2 million kuna to 85.6 million kuna, would be carried out by withdrawing 10,943 ordinary shares, as well as through a so-called simplified reduction of the share capital by decreasing the nominal amount of ordinary shares from 100 to 50 kuna per share.

After that, an increase in share capital should be carried out by issuing 400,000 new ordinary shares with a nominal value of 50 kuna per share, completely excluding the preemptive rights of existing shareholders. This would increase the share capital of Karlovačka banka by 20 million kuna, to 105.6 million kuna.

In the invitation for yesterday’s assembly, it was stated that fresh capital inflow is necessary for the continuation and normalization of the bank’s operations.

-It is estimated that at this moment there is no possibility in the capital market for a successful public offering of shares while retaining the preemptive rights of existing shareholders, while at the same time there are interested investors who have expressed their willingness and intention to invest funds in the company- it was stated in the invitation for the assembly.

For part of the decisions made at yesterday’s General Assembly of ordinary shareholders of Karlovačka banka regarding the reduction and increase of share capital, the assembly of preferred shareholders, which is held today, must also give its consent.