HBOR: Varteks’ Offer for Debt Settlement is Unacceptable

The Croatian Bank for Reconstruction and Development (HBOR) stated on Monday that it has been continuously trying to help stabilize Varteks’ business for years, in cooperation with commercial banks, but that the offer presented by the company for debt settlement was ‘unacceptable’.

HBOR reacted to Varteks’ statement from Saturday, in which the Varaždin textile company stated that HBOR and Zagrebačka banka (Zaba) rejected the presented offer for settling debts and stabilizing operations, emphasizing that they are most affected by HBOR’s ‘surprising decision’ since that bank is state-owned, and Varteks’ bankruptcy would ‘lead to a net loss for the state budget of more than 7.4 million euros in the next year’.

– The question arises as to what the purpose of HBOR is, as in the case of Varteks we do not see that they care about preserving jobs, nor do we see that they care about taxpayers’ money. This rejection puts us in a difficult situation because, if HBOR does not reconsider, we are talking about the inevitable end of Varteks. Once again, we ask the decision-makers at HBOR to reconsider our offer and take all parameters into account – appealed Varteks on Saturday.

– HBOR, in cooperation with commercial banks, has been investing significant resources and efforts for years trying to help stabilize Varteks’ business. Starting from the pre-bankruptcy settlement in 2013, through financial-operational restructuring in 2017, to additional attempts to commercialize inactive assets and plans to improve the sustainability of Varteks’ business and liquidity – stated HBOR today.

Acknowledging Varteks’ difficult situation, HBOR says it has shown additional willingness to cooperate. – Despite delays and non-fulfillment of contractual obligations and regardless of retaining the first rank of lien over Varteks’ properties, in agreement with the commercial bank, we have granted concessions and waived part of the collection of debts from the sale of non-operational assets in favor of Varteks. From all of the above, it is clear that HBOR is indeed taking care of preserving jobs and continuing Varteks’ operations – it is stated.

– It is important to note that HBOR, in agreement with the commercial bank, has simultaneously offered Varteks an alternative proposal aimed at resolving the current situation, which Varteks does not mention at all in its statement, and to which no response has yet been received – added HBOR.

In conclusion, they stated that media pressures of this kind on HBOR and the commercial bank are neither necessary nor useful.

– HBOR operates in accordance with the rules, transparently and responsibly, with the aim of protecting its own capital and maintaining financial stability. We remain open to further dialogue with Varteks and other relevant stakeholders to find a mutually acceptable solution – stated HBOR.