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Croatian water proving interesting Croatian water proving interesting

Saudi Arabian company shows interest in buying Croatian water

Written by  Oct 18, 2016

For purchasing Sveti Rok, the water bottling plant in the Lika region which filed for bankruptcy and for the continuation of its production, there will be no lack of interested parties. Even though the bankruptcy institutions haven't made the decision about taking over the company yet, a process of restructuring and finding a potential buyer has yet to be prepared, but potential investors themselves are already knocking on the company's door.

Certain Croatian retail chains have already expressed their interest in the Sveti Rok company, as well as one Canadian group, presumably members of the Croatian Diaspora. However, the biggest interest is coming from Saudi Arabia. Recently a potential Arab investor has been purchasing large quantities of the Lika water thus raising the balance of exports of the Lika water which is currently at about 10 percent of the company's revenue.
According to the words of Frane Dobrovic, the bankruptcy trustee, the potential Arab investor is a member of the global high-level business circles and one of the leading water importers in Saudi Arabia who works with the largest water manufacturers in the world. Considering the fact that the water company from Lika is quite small on the world market, the interest of the global business players in Sveti Rok, Frane Dobrovic explains with the quality of the Lika water. ‘’They say it is the best water they have ever tasted, but doing business in Croatia is very difficult for them. However, that wouldn’t be an obstacle if the company’s business was well regulated’’, said the bankruptcy trustee.

The key to the best outcome of this story could be in an upcoming assembly of creditors. It is expected that this October important decisions will be made in order to find a new owner. It would also accelerate judicial evaluation of the assets and making of the bankruptcy plan, but also the possible positive solution of some administrative and legal obstacles.

As the state is the biggest creditor in the bankruptcy, it can dictate the further development of the situation and the way of settling with the creditors.

''The state should be flexible because the preservation of this production is of great importance to the Lika region, whilst the general social interest is to continue with the work. During the whole season the company worked better than before the bankruptcy, with more employees (28), and all obligations were duly settled. We managed to ensure the liquidity of the company from regular sales. So, there will be no sale yet’’, concluded Dobrovic.

The Voice of Dubrovnik

THE VOICE OF DUBROVNIK


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