Zagreb Holding to Be Subjected to Debt Enforcement Over Millions of Kuna in Debt (Jutarnji List)

By 11 October 2021
A press conference of HDZ and HSLS representatives in the City Assembly on the situation in Zagreb Holding was held in the Old Town Hall.
A press conference of HDZ and HSLS representatives in the City Assembly on the situation in Zagreb Holding was held in the Old Town Hall. Photo: Robert Anic/PIXSELL

ZAGREB, 11 Oct 2021 - The Zagreb Holding utility conglomerate could soon be subjected to debt enforcement over the debt of several dozens of millions of kuna, Jutarnji List daily reported on Monday.

According to the daily, the potential debt enforcement was initiated by the Reoma waste management company, which on Friday sent enforcement documents to the Čistoća public sanitation company. The reason, they said, is that Holding hasn't paid them HRK 14 million for the removal of bulky waste.

Also, the Ce-Za-R company, connected with C.I.O.S. owner Petar Pripuz, is today also initiating debt enforcement collection against Holding, they confirmed, over a debt of HRK 11 million, while the construction company Ingra, or Lanište, is demanding about HRK 30 million from Holding, which Holding owes it for the lease of the Arena sports hall.

Ingra also warns Holding that the termination of the contract with their company Lanište would result in the City and Holding having to pay €120 million and a takeover of the Arena hall. All these sums come on top of an already difficult financial situation for the City and Zagreb Holding, which has now become a debtor (although it conducts about 500,000 debt enforcement proceedings per year over unpaid bills).

Holding ended last year, Jutarnji recalls, with a loss of HRK 250 million, which former Management Board chair Ana Deban Stojić said was due to the pandemic, and last week, about several dozens of millions kuna of unplanned expenses was incurred due to the rupture and reconstruction of water supply pipes in Selska Street.

At the beginning of Mayor Tomislav Tomašević's term in office, the City borrowed HRK 400 million from banks, and the budget is also burdened by loans of HRK 750 million from the state (due in May 2022), as well as by an additional loan of HRK 150 million from the state for repairing the damage from the earthquake.

As for Holding's current debts, those are mostly outstanding liabilities in the new management's term. The Reoma Group is therefore claiming HRK 14 million for the period from April to August for the removal of bulky waste (invoices are issued with a 60-day delay) plus default interest of HRK 100,000.

This is a HRK 90 million deal from 2019, which Holding closed during the term of Milan Bandić with the Reoma Group and the Ce-Za-R company. The contract expired in August this year due to the capacity being filled up, and Tomašević then cancelled the new tender for bulky waste removal and announced the procurement of two crushers so that the City could do the job on its own and save HRK 33 million, Jutarnji List reported.

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