Badel 1862: Conditions Established for the Continuation of the Pre-Bankruptcy Settlement Procedure

Badel 1862 reported on Monday that conditions have been established for the continuation of the pre-bankruptcy settlement procedure for the company, following the finalization of two decisions by the Ministry of Finance regarding the determination of the breach of legal personality.

The Tax Administration conducted a procedure to determine the breach of legal personality, specifically to ascertain the abuse of rights by former members of the management of Badel 1862 during the period from 2010 to 2012, and two decisions were made in this process, one of which became enforceable on the 24th and the other on the 25th of October this year. Accordingly, the Ministry of Finance informed the competent settlement council that conditions have been established for the continuation of the pre-bankruptcy settlement procedure, as stated in Badel’s announcement.

The pre-bankruptcy settlement procedure for Badel began on April 23, 2013, but this procedure was interrupted after three months due to the conduct of the procedure to determine the abuse of rights over Badel, specifically the determination of the breach of legal personality.

In the notice sent by the Ministry of Finance to the settlement council that conducted the procedure, which was published on the website of the Financial Agency (Fina), it is stated that the Tax Administration conducted a procedure to determine the breach of legal personality, specifically to ascertain the abuse of rights over Badel 1862, and two decisions were made in October 2014, which became final last week.

In the financial report for the first nine months of this year, published last week, Badel 1862 reiterated that the submission of a request for the interruption of the pre-bankruptcy settlement and the eventual decision on the interruption of the procedure will not affect the continuation of the pre-bankruptcy settlement procedure, but may potentially extend the deadlines for the procedure.

“Badel 1862 continues to operate and act in accordance with the Law on Financial Operations and Pre-Bankruptcy Settlement, by maintaining existing business relationships and ensuring regular operations, thereby striving to achieve the primary purpose of the said Law, which is to ensure the continued normal operation of entrepreneurs,” stated the company’s management in the notes accompanying the nine-month financial report.

According to data from that report, Badel 1862 achieved a profit of 17.2 million kuna in the first nine months of this year, which is 22 percent less than in the same period last year.

Badel’s business revenues in the nine months amounted to 213.3 million kuna, a decrease of 9 percent compared to the same period last year. Sales revenues decreased by 11 percent, to 203.9 million kuna, which, as stated by the company, is a result of the decision to close the non-alcoholic beverage division.

According to the report, Badel’s business expenses in the first nine months amounted to 200.4 million kuna, a decrease of 5 percent.