The situation at Finvest has stabilized, but furniture is no longer produced

The wood business, since John R. Alm took over Finvest six months ago, has been reduced in Gerovo to a sawmill and pellet production.

Six months ago, American John R. Alm acquired 90.5 percent of the shares in Finvest Corp and Hotels Njivice from the former majority owner and founder Marijan Filipović. Alm, a retired manager and former director of Coca-Cola, took over both companies, which were in a difficult financial situation, for one kuna.

In these six months, the situation has stabilized in terms of workers receiving salaries and a partial settlement of the debt to the main supplier, Croatian Forests. However, there is no longer furniture production at Finvest, and the wood business has been reduced to a sawmill and pellet production in Gerovo. A large portion of the raw material is sourced from Slovenia, and 90 percent is exported.

In addition to Italy and Slovenia, the largest portion of production is marketed in the Middle East. The facilities in Čabar, Prezid, and Tršće have been closed, and the one in Gerovo remains, employing about 70 people, along with the production of electricity poles, which has been separated into a special company based in Karlovac.

The CEO of Finvest Corp is Branko Jurković, and of Hotels Njivice, Zvonimir Tudorović, who held that position during Filipović’s time and is now Alm’s ‘right hand’. Besides him, Alm’s closest associate in Croatia is lawyer Oleg Uskoković from Varaždin, who is his proxy for all his business in Croatia.

Before Alm’s arrival, a pre-bankruptcy settlement procedure was initiated, and the wood business was in a particularly difficult business and financial situation. As early as October 2014, conditions for bankruptcy had matured as Finvest Corp was in a prolonged blockade with a debt of 98 million kuna and owed workers six salaries, and the pre-bankruptcy settlement was opened in March this year. According to Tudorović, the settlement was voted on, and a large majority of creditors, especially banks, likely raised their hands due to the fact that Alm now stands behind Finvest.

– For us, the most important thing is that we have obtained a majority owner who has credibility with banks and suppliers and that we can plan development for the next three to five years – says Tudorović.

At Hotels Njivice, work is underway on debt restructuring and an agreed investment plan of 12 million euros, while at Finvest, the focus is on business consolidation.

Filipović is said to be neither heard nor seen in Gorski kotar. However, some small shareholders and workers emphasize that they do not understand whether Alm has truly taken over both companies and what his relationship with Filipović is. According to SKDD data, the largest shareholder of Finvest, with 61.8 percent of the shares, is under a custodial account managed by Hita vrijednosnice, while Filipović still holds 13.4 percent of shares under a custodial account and 7.18 percent under his own name.