The Association of Creditors of former workers of Jadran Crikvenica has sent a letter to a number of state institutions questioning the objectivity of the recently adopted Strategic Business Plan until 2025, authored by Horwath HTL.
The Association accuses Horwath of undervaluing the company at 30 percent of the estimated value from the bankruptcy plan, in which the equity capital is estimated at 490 million kuna. They also demand that Jadran’s shares be urgently listed on the Zagreb Stock Exchange, šwhich they consider a necessary condition for the future buyer of the controlling stake to purchase shares from small shareholders. Miroslav Dragičević, a senior partner at Horwath, considers the Association’s claims completely irrational.
– We approach evaluation not in an emotional but in an objective manner as experts dealing with the valuation of the international hotel business. The value of Jadran is lower than in the bankruptcy plan because its calculation is based on the discounted value of future revenues. This is the only valuation model under which private capital would take on the risk of investing in the company – claims Dragičević.
He also commented on the Association’s desire for the shares to be listed on the stock exchange, stating that Jadran must first undergo a period of post-bankruptcy stability and settlement of all arrears. After the new management verifies the strategic plan, the company is ready to find a strategic partner who needs to inject fresh capital, and then thoughts can turn to the stock exchange. Dino Manestar, the CEO of Jadran, states that the estimated construction value of the real estate was introduced in the bankruptcy plan, not the valuation of the company’s business value, and that Horwath’s valuation is realistic.
