Štrok’s T-nest Left Without Investors: Project Heads to Auction

Although the Zagreb company CCS Consulting announced an investment in the struggling luxury tourist resort project T-nest in Lika two and a half months ago, which Goran Štrok initiated in 2018 and then halted during the coronavirus crisis, it seems that this announcement will come to nothing.

Namely, the potential investor was given a 60-day deadline at the end of August to reach an agreement with HBOR, as the largest creditor, regarding the write-off of part of the claims and the continuation of the project, as well as to submit a bankruptcy plan.

The bankruptcy administrator continues the process

However, according to the bankruptcy administrator of the company Adriatic Luxury Development (JLR) Predrag Filajdić, no statement has been received from CCS Consulting regarding whether an agreement with HBOR has been reached. Therefore, the administrator continues with the bankruptcy proceedings, which include the assessment of assets and their preparation for sale.

– The investor was supposed to respond to the bankruptcy plan and submit an offer by the end of October. It was crucial for them to conclude an agreement with HBOR to meet the prerequisites for continuing the development of the bankruptcy plan. The plan was to negotiate with HBOR for the purchase of their claim of 2.7 million euros at a discount, and after that, they were to pay off the other creditors within 90 days, also at a certain discount. According to the plan, HBOR would provide a loan for the continuation of the project. However, we did not receive any statement by the deadline – explained the bankruptcy administrator.

Assets go to auction

Given the current situation, the assets of the company Adriatic Luxury Development could be up for auction in about two months. The bankruptcy administrator, however, leaves open the possibility that an interested investor may emerge in the meantime, as other investors from France and Dubai have also been mentioned alongside CCS Consulting.

It is estimated that around 10 million euros is needed to complete the project. The luxury tourist project near Lovinac envisioned the construction of 70 larger and smaller villas and accompanying facilities on an artificial lake. So far, land has been purchased, wooden houses have been ordered and partially paid for, which are now located in Bosnia and Herzegovina and awaiting delivery. As the main reason for the project’s financial troubles, Štrok cited a significant increase in construction costs.

Alongside HBOR, the largest creditors are Štrok with 2.3 million euros and his wife with 1.7 million euros, while the other ten creditors collectively claim about 800 thousand euros.