Creditors Demand 1.8 Billion Kuna from EPH

Claims of creditors against Europapress Holding (EPH) have been established at nearly 1.8 billion kuna, according to the minutes from the hearing in the pre-bankruptcy settlement procedure held on Wednesday, which was published today on the website of the Financial Agency (Fina).

At that hearing, creditors reported claims of 1.984 billion kuna, while 215.8 million kuna was disputed.

The settlement council of Fina determined that the total claims of creditors against EPH amount to 1.779 billion kuna, as stated in the minutes.

The largest claims are held by creditors from Europapress Holding itself. Thus, 4 Media EPH claims 396.17 million kuna from EPH, EPH Medija 383.3 million, EPH Magazini 361.2 million kuna, Gloria grupa 238.77 million kuna, and Media Nexus, with a claim of nearly 204 million kuna. All these companies are also in the pre-bankruptcy settlement procedure.

More than 100 million kuna in claims against EPH from within that holding is also held by Slobodna Dalmacija, which claims 121 million kuna.

Separately, secured creditors, who have enforcement documents, are claiming 416.25 million kuna from EPH. The largest claim among them is from Hypo Leasing Kroatien, amounting to 157.4 million, followed by Zagrebačka banka, 121 million, and Hypo Alpe Adria Bank International, nearly 83 million kuna.

EPH’s director Peter Walter Imberg stated at the hearing that the business results are positive; however, in recent months, the main creditors have lost confidence.

He emphasized that there was an agreement with creditors through a so-called standstill arrangement, which was agreed upon until April 30 of this year, and was supposed to be extended until the end of the year to buy time. Following this, an account blockade occurred, leaving the company with no choice but to initiate the pre-bankruptcy settlement procedure.

EPH’s publications continue to be released, and EPH wishes to remain present in the market with all its products, Imberg stated at the hearing.

At the end of July, the Settlement Council opened the pre-bankruptcy settlement procedure against EPH, and on August 21, EPH submitted a plan for financial and operational restructuring in which it proposed to carry out a recapitalization with a cash payment of 60 million kuna, the merger of all companies in full ownership, and the consolidation of all companies, financial restructuring of obligations to credit institutions, and the regulation of outstanding obligations to the state and suppliers.

However, since this proposed financial restructuring plan does not cover all established claims, the Settlement Council ordered EPH on Wednesday to submit a new financial and operational restructuring plan within eight days, which will be substantively aligned with the resolution on established claims. Additionally, EPH must submit a draft pre-bankruptcy settlement that will be substantively aligned with the aforementioned plan within that timeframe.