The state does not agree with the collective sale of Name in downtown Zagreb

The state does not agree with the collective sale of the department store and real estate Name in Zagreb’s Ilica at a joint public auction, according to the statement of state institutions ahead of the creditors’ assembly of that company in bankruptcy scheduled for September 18.

– The secured creditor, the Republic of Croatia, Ministry of Economy – Directorate for Commodity Reserves, does not agree that the properties in question are sold together at a single joint public auction if such a sale cannot achieve the collection of claims from the bankruptcy estate, based on the secured rights of the creditor of the Republic of Croatia – states the statement of the County State Attorney’s Office representing state institutions.

The statement followed last week’s conclusion of the Commercial Court in Zagreb, which called on the state to state whether it agrees that the building, courtyards, garden, and park of Name at Ilica 4 – 6 and the wall at Radićeva 1 be sold at a joint public auction, as stated in the conclusion of September 3, which gave the state a deadline of three days after delivery to respond.

The court’s conclusion was made ahead of the creditors’ assembly of Name d.d. in bankruptcy, scheduled for September 18, at which a decision should be made regarding the sale of department stores and real estate of Name in Ilica, as well as in Kvaternik Square.

The sale was initiated after Croatia Osiguranje’s request for a trial within a reasonable time was established last December, more than 23 years after the opening of Name’s bankruptcy, and a decision was made that the sale of buildings in Ilica and Kvaternik Square must be made within nine months.

In addition to the state’s statement, the court also received a submission from Croatia Osiguranje, which agrees with the collective sale of Name’s real estate in Zagreb’s Ilica, but also proposes that the properties of Name in Ilica and Kvaternik Square be sold at public auctions.

– The secured creditor believes that there is no reason to differentiate between properties in terms of the method of sale, i.e., that it is not purposeful to sell the business building in Kvaternik Square by collecting written offers, while the property in Ilica is sold at public auction – it is emphasized in the submission.

The department store in Ilica is registered as three objects

Before the creditors’ assembly was convened, the bankruptcy trustee Damir Mikić submitted a report stating that, considering the ownership and land registry status of the remaining properties and that both department stores are still operational and employ workers, ‘it would be appropriate to make a decision on the sale of the assets as a whole’.

That is, that the properties and movables of Name be sold together and that the buyer be obliged to take over the business and stock of goods and the workers found on site for a specified period, and that for at least two years.

As the ownership or land registry status of the remaining department stores is different, the bankruptcy trustee also believes that both department stores should be sold simultaneously but in different ways.

The department store in Kvaternik Square is registered in the land registry as one parcel and object owned by Nama d.d. in bankruptcy and has no registered encumbrances, while the one in Ilica is registered as three different parcels and three objects, with two parcels (Ilica 4 and Radićeva 1) fully encumbered by the mortgage of Croatia osiguranje d.d. and the state, while on Ilica 6, one part is encumbered, and the other part is not.

In the court’s conclusion, it is stated that the sale will be conducted through a public court auction in accordance with the bankruptcy law and with the appropriate application of the enforcement law.

The buyer must take over the workers found on site and continue the business activity for a period of at least two years, and for participation in the auction, interested buyers are required to pay a deposit of five percent of the initial value of the assets. The initial price will be determined according to the assessment of the court expert for real estate and according to the accounting value for the equipment of movables, it is emphasized in the conclusion.