At the Request of the Tax Authority, the Pre-Bankruptcy Settlement of Badel 1862 Has Been Terminated

The pre-bankruptcy settlement procedure of Badel 1862 has been terminated at the request of the Ministry of Finance – Tax Administration, Badel announced today, stating that they will timely inform about the continuation of this procedure.

The settlement council yesterday, July 29, made a decision to terminate the pre-bankruptcy settlement procedure over Badel 1862, noting in the decision that a request from the Ministry of Finance – Tax Administration was received yesterday, requesting the termination of the pre-bankruptcy settlement procedure ‘since a procedure for determining the abuse of rights is underway.’

With the termination of the procedure, all deadlines specified by the Financial Operations and Pre-Bankruptcy Settlement Act cease to run.

The terminated procedure will continue when the reasons that led to the termination cease, i.e., with the publication of the decision on the continuation of the procedure, as stated in the decision published on the website of the Financial Agency (Fina).

Badel reported the termination of the procedure via the Zagreb Stock Exchange in a special announcement, and the company’s management also addresses this in the semi-annual business report.

They remind that on June 5, the Ministry of Finance submitted a request to the Settlement Council of Fina for the termination of the procedure for determining the breach of legal personality based on the Financial Operations and Pre-Bankruptcy Settlement Act, the General Tax Act, and the General Administrative Procedure Act.

The report also notes that the decision to terminate the procedure will not affect the continuation of the pre-bankruptcy settlement procedure over Badel, but may potentially extend the deadlines for the implementation of the procedure.

Badel 1862 continues to operate and act in accordance with the Financial Operations and Pre-Bankruptcy Settlement Act by maintaining existing business relationships and ensuring regular operations, thereby striving to achieve the primary purpose of the mentioned law, which is to ensure normal business operations, emphasizes Badel’s management in the explanation of the six-month financial report.

Data from that report shows that Badel 1862 recorded a loss of 12.2 million kuna in the first half of the year, which is a decrease of 1.8 million kuna, or 13 percent, compared to the same period last year.

The reduction in loss, the company states, is evidence of a positive business trend and is particularly encouraging given the tourist season and the expectations they have from it.

Badel’s total revenues in the first half of the year amounted to 153.4 million kuna, which is 0.24 percent lower than in the same period last year, while at the same time, expenses were reduced by 1.3 percent, to 165.6 million kuna.

The decline in revenue is a result of significantly hindered operations due to the company’s illiquidity caused by a blockade at the end of February and poorer macroeconomic conditions, which led to business processes within the company being carried out slowly and with delays, as stated in the explanation of the business results.

During the first six months, business expenses recorded a decrease of 4 percent compared to the same period last year, which is a result of entering the pre-bankruptcy settlement process and significantly reduced investments, as well as more rational management of available resources, as stated in the explanation of the report.