Sunny Hvar Settles Debts from Pre-Bankruptcy Settlement and Expects the Most Successful Season

The Hvar hotel company Sunny Hvar, one year after concluding the pre-bankruptcy settlement before the Commercial Court in Split, has made an early settlement of the remaining debts to creditors established through the process of that settlement, the company reported on Monday.

Not disclosing the amounts of the settled remaining debts or the names of the creditors, Sunny Hvar reminds that the financial restructuring plan envisaged a simplified reduction of the share capital and recapitalization of shareholders on a pro-rata basis, and in accordance with the pre-bankruptcy settlement, the payment of remaining claims to creditors in installments according to the established repayment terms over the next eight or fifteen years.

– Considering that previously, as early as the beginning of 2015, a reduction of the share capital and recapitalization was carried out in Sunny Hvar, the process of financial consolidation has been successfully completed within just one year after the conclusion of the pre-bankruptcy settlement, emphasizes Sunny Hvar.

For the payment of creditors from the pre-bankruptcy settlement, they note that part was carried out from their own funds, and part from a loan granted to Sunny Hvar based on a long-term multi-currency club loan agreement. The successful implementation of the financial plan and the reprogramming of existing obligations, however, enabled further growth and development, as well as all prerequisites for generating revenue with which a new investment cycle was initiated, namely the renovation of the Pharos hotel, which was fully paid from their own funds.

– The pre-bankruptcy settlement, as well as the entire financial restructuring program supported by the majority shareholders – the Republic of Croatia and the Slovak Prime Tourist Resorts – and all other creditors, has proven to be a positive solution as it allowed us to complete the entire consolidation, operate smoothly, and realize planned projects, which have proven crucial for the company’s renewed strengthening and positioning in the global tourism market, emphasizes CEO Gordana Tomičić.

She adds that this year Sunny Hvar achieved a historically best pre-season, and that considering the results of July and August, as well as the state of reservations in September and October, they expect the longest and most successful season.

– The newly renovated and opened Pharos hotel this summer significantly exceeds expectations and the financial goals set by the plan, and the entire company records a 22 percent increase in overnight stays and a 15 percent increase in revenue compared to last year. Sunny Hvar has thus proven that the pre-bankruptcy was not just a temporary, but a long-term solution for saving a promising company, preserving hundreds of jobs and ensuring the smooth development of the company as well as the overall tourist offer of one of the most sought-after tourist destinations in Croatia, stated Tomičić.