The board of directors of the company "Sveti Stefan hotels" warned that the company "Adriatic Properties" of businessman Petros Statis has not paid the rent for the city hotel Sveti Stefan and Villa Miločer, which is why the liquidity of the majority-owned company is threatened.
If, as stated in the announcement signed by CEO Nikola Plamenac and President of the Board of Directors Milica Kažanegra, the rents are not settled as soon as possible, they will initiate an extraordinary Shareholders' Meeting at which it will be decided to terminate the lease agreement.
"Due to the seriousness of the situation in which the company 'Sveti Stefan hoteli' ad Budva finds itself, an emergency meeting of the Board of Directors was held, where certain conclusions were adopted and the necessity to present them to the most important institutions in Montenegro as well as to the public was noted. The company "Sveti Stefan hoteli" ad Budva derives all its business income from the rental of its entire property to Adriatic Properties. The tenant did not pay the invoices for the III and IV quarters of 2023," the announcement states and adds:
"Also, the lessee did not pay the rent in full according to the submitted invoices for all 4 quarters in 2022, and in order to collect the difference, proceedings are being conducted before the Commercial Court of Montenegro. By not paying invoices, the Company does not realize any cash inflow and fulfills existing obligations exclusively from liquidity reserves accumulated in the previous period. Furthermore, it is of great importance that proceedings are being conducted before the Arbitration Court in London and that at this moment it is not certain how long the Company will be obliged to obtain funds for the costs of the Arbitration Court until the end of the proceedings", the company points out.
Bearing in mind the resulting situation, as they add, as well as the fact that the liquidity of the company, which is majority-owned by the Government of Montenegro, the PIO Fund and the Employment Agency, is called into question, then the existence of uncertainty regarding the payment of the costs of arbitration proceedings, as well as the fact that the hotel Sveti Stefan has not been open for three years, the Board of Directors of "Sveti Stefan hoteli" ad Budva decided that, if the rent obligations are not settled as soon as possible, an extraordinary shareholders' meeting will be initiated, at which the shareholders will decide whether the Contract to terminate the lease in accordance with the law and positive legal regulations, or possibly propose some other modalities.
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