Podgorica – The board of creditors of HTE Ulcinj Riviera until the end of the week will bring a decision about the exit of company out of bankruptcy – find out “Vijesti”.
Procedure of the exit from the bankruptcy which, among other things, means registration of stock sharing corporation in the Business court, constitution of the parliament and the board of directors and it will take at least 30 days.
Ulcinj Riviera, during the sale of the hotel, managed to give back the entire debt of over 12 millions of euros, but also managed to keep some significant property which gives a chance for successful business and privatization.
The company, except hotels Bellevue and Olimpik, nudist lodgment on Ada, two auto camps and a warehouse which spread on about 360.000 m2, will keep on its account about 6 millions of euros. They will have at their disposal 1.500 beds.
In the Government, as “Vijesti” found out, they gave big plans for further development of Ulcinj Riviera. The Government in the most famous Ulcinj Company has somewhat less than 10% of stock shares, but together with the state funds it has around 73%. The option which, as “Vijesti” find out will be proposed to the funds is separation of Ada Bojana in a separate firm because the sale of Ada Bojana is not planned.
In that case Ulcinj Riviera would be privatized on an international open competition, while for Ada Bojana there are several possibilities such as joined investment of the state with foreign investors, then giving under a long term lease etc. Stock share holders of Ulcinj Company, according to the plans of Government, would not be damaged by separation of Ada in an individual firm, because the ownership structure of Ulcinj Riviera would be copied on Ada. In that option minor stock share holders which are made from private funds, workers, citizens and buyers from the stock market would get 27% of the stock shares of Ada.
With the proposition of development of Ulcinj Riviera and Ada Government will soon inform the state funds after which they will bring the final decision about the destiny of a former tourist giant.
On a recently ended open competition for renting of Ada in a long term period no one applied. On that open competition it was predicted that the minimal year’s lease for Ada should be 2, 5 millions of euros, and they have asked form the bidder that in the period of three years he should invest at least 75 millions of euros in modernization and reconstruction of the complex, that is, to invest 100 millions of euros in the next 5 years.
Ada Bojana for the greatest part is an intact island of surface of about 500 ha, with a separate promenade along the sea shore from whose both sides River Bojana is found. The island has a natural beach which is 30 meters wide and over 2, 7 kilometers long, with the total surface of about 75.000 m2.
The island is now connected with the shore with a bridge over the north branch of River Bojana. HTE Ulcinj Riviera at this moment uses about 6ha of Ada where nudist lodgment, restaurants, camp are located.
MAYBE A NEW ESTIMATION HAS TO BE MADE
The estimated value of Ulcinj Riviera with the entire property which it owned before the bankruptcy is about 81 million of euros (51 euro per stock share), while according to the current stock market values it is 28 millions (17, 5 euros per stock share). In case of separation of Ada in an individual firm, it is most likely that the new estimation will be done.
More than two years ago Ulcinj Riviera sol the hotel Otrant on Velika plaza to Russian firm Barkli Sk for 2, 5 millions of euros, with the obligation of investment of 4, 5 millions. Not long after that American company Becovic management bought from Ulcinj Riviera hotel Mediteran for 940.000 euros with the obligation to invest somewhat more than 6 millions of euros. In September this year, bankruptcy management has sold hotel Galeb to Roksped for 5, 75 millions of euros. And finally, Lido was sold for 10, 8 millions of euros, which is the biggest price for a Montenegrin hotel ever sold. With the sale of Lido the accounts were settled, and Ulcinj Riviera now has 6 millions of euros on its account.
Ulcinj Riviera earlier has sold the suite group Stari grad (OLD TOWN), which is made od Dvori Balsica (CASTLE OF BALSICI), and palace Venice for somewhat more than 700.000 euros. The bus station on the entrance into the town was sold at almost the same price.