In accordance with the Financial Operations, Insolvency Proceedings and Compulsory Dissolution Act (the ZFPPIPP Act), a proposal for initiating a preventive financial restructuring proceeding was brought before the Ljubljana District Court by Sava d.d. on Wednesday, 26 November 2014.
The consent for initiating the proceeding has already been granted by the creditor banks and DUTB, whose receivables, as required by law, exceed 30% of total receivables due from Sava d.d. Sava d.d., the parent company of the Sava Group, has been efficiently carrying out the strategy of business and financial restructuring, and consolidation ever since the new Management Board had assumed their term of office in 2011. Led by the new management, Sava d.d. introduced a modified and more efficient management model, merged the companies of the Tourism division, divested the Rubber Manufacturing and Real Estate divisions, as well as certain other investments, improved operative business and carried out other activities, thereby providing the conditions for a successful consolidation of strategic investments, extension of the restructuring agreement for finance sources, while it also managed to repay a significant part of financial liabilities.
Sava d.d. decided to initiate the preventive restructuring proceeding according to the ZFPPIPP Act and with the support from the creditors in order to assure equal treatment of all creditors, protect their interest and assets. The achieved consensus provides the platform for initiating the preventive restructuring proceeding that will facilitate further steps towards repayment of financial receivables, achieving synergetic effects in the Tourism division, optimisation of operations of the renewed Sava Group but also prevent the risk of selling-off the assets.