The government is satisfied with the restructuring plan of the Igalo Institute, but the decision on its confirmation is now up to the Assembly of shareholders of that company.
This was said by Prime Minister Milojko Spajić at a press conference on the Institute's restructuring plan. The government ordered this plan from a team of experts from the University of Montenegro and it provides 106.814.839 euros for this process.
Spajić stated that the Institute's recovery was hampered by regulations on state aid and the ownership structure, but that they made an effort and found solutions to the problems. He stated that the restructuring plan is in line with our and EU legislation and that it is favorable for the owners, as well as that the Faculty of Economics has done a "world-class" job.
"We searched all options and experts and this is the only realistic idea. This is what we could do, we allocated significant funds in the budget for the next year. Now the decision is in the hands of the Shareholders' Assembly, which must confirm the restructuring plan" , emphasized Spajić and said that it was a significant investment and that they were ready to invest hundreds of millions of euros in the Institute.
He invited the minority shareholders to cooperate with them and invest, and that they will buy their shares if their interests are not identical.
"Or are you going to block this and go bankrupt, those are the three modalities you have in front of you. This is the only possible solution, will it suit everyone perfectly. We believe in the survival of the Institute, we have done everything and our conscience is clear. This restructuring plan is literally a new covenant of the Health Fund, the Government and the state-owned enterprise, which should oblige everyone to certain behavior and steps, which will take place in the next three years," Spajić said.
Spajić also pointed out that it is illogical that the Institute's debt to Jugobanca, at one point, amounted to one million euros, while at the end it was 7,5 million. He pointed out that he believes that there could be work for the prosecution.
"It doesn't occur to me that I judge as a representative of the executive power, but we have a division of powers and courts that should deal with that issue. We point out that there are illogicalities of megalomaniac levels, and that precisely this debt serves to block accounts and force the state to pay. That are illogicalities that should be investigated by someone because it is so obvious that there are many problems and that one and one are not two," he said.
When asked by a journalist, whether the restructuring plan will be made public, he said that the document will first go to the hands of the minority shareholders, so that they can familiarize themselves with it, and that this is the first step.
When asked how the money will be provided, Spajić stated that lending and the sale of a small part of the Institute's assets are on the table, but that they do not know anything until the plan is adopted, because they do not know the capital structure.
He also thanked the workers of the Institute, who were without salaries for a significant part of the year.
Jocović: Minority shareholders to invest or be bought out
The Dean of the Faculty of Economics, Mijat Jocović, thanked them for trusting them to develop a plan, and that they were faced with two options - bankruptcy or the survival of the Institute.
Jocović stated that the rules of state aid are strict, while their goal was to continue the work of the Institute and to maintain the possibility to treat patients of the Health Insurance Fund.
As he claims, during the development of the plan, they talked with all interested parties, so the plan foresees 106,81 million euros for this process. Jocović stated that the minority shareholders have the option to invest or to be bought out, and that they too would like the recovery of the Institute.
"The funds provided for the restructuring process of the Institute amount to a total of 106.814.839 euros and they will be financed 60 percent from the state budget and 40 percent from the funds of the Institute. In the total amount of this 40 percent of the Institute of 42.725.936 euros, and public funding, that is, 60 percent, will be 64 million euros," said Jocović and added that minority shareholders are welcome, but that due to state aid regulations in parallel, they have to participate with the money invested by the state.
He emphasized that in the first year, the plan foresees a participation of 41.296.000 euros, of which the state aid is 32.458.000 euros and the Institute 8.928.000 euros.
"We cannot know how the participation of the Institute will be carried out until the end, because it is unknown how the shareholders will decide according to the restructuring plan. It is the autonomous right of the shareholders how they will make their decisions and the plan could not prejudice their decision They have the option to buy back their shares, to participate proportionally within this 40 percent. In the third year, 2027, the state's participation is 28.334.000 euros It is 2028 euros in 4.955.000. That is the total amount in these 106 million euros," he emphasized.
When it comes to the potential buyout of the minority shareholders' shares, Jocović explained that the price was determined according to the offer before the plan was drawn up, which the minority shareholder offered to the state before this process, namely EUR 9.574.000.
"That is the amount of the purchase of all shareholders' shares at a price of 58 euros. This does not mean that shares will be bought or sold at that price, that is a matter for agreement between the state and the minority shareholder. The goal is to ensure long-term sustainability, the Faculty of Civil Engineering has estimated the necessary investments in buildings, equipment. These funds amount to 69 million euros, and this is an investment that raises the Institute to the level of four stars. The plan is based on the assumption that there are no layoffs, and 26 million is planned for financial recovery," he said said Jocović and repeated that their goal is to maintain economic activity.
Asked about the authors of the plan, Jocović stated that they were given the task and that project teams worked on it, as well as the dean of the Faculty of Civil Engineering, Marina Rakočević. He pointed out that there are 12 professors from the Faculty of Economics and more than ten from the Faculty of Civil Engineering.
"Debts to all creditors, including suppliers and financial institutions, will be repaid in 2025. However, the assumption for debt repayment is the adoption of the restructuring plan," Jocović emphasized, adding that the debts amount to a total of 23 million euros. Failure to adopt the plan means bankruptcy of the Institute, obstruction of the plan means bankruptcy... The plan binds the Institute and the state, and its implementation means survival," he added.
Jocović added that the Institute is the heart of the healthcare system, that every bankruptcy means numerous consequences for workers, the state, suppliers...
"Research shows that one euro invested is returned as three euros of savings," he said.
Radunović: This offer is the Government's maximum
The Minister of Spatial Planning, Urbanism and State Property, Slaven Radunović said that this step gives the Institute a chance to survive and that this offer is the Government's maximum.
He pointed out that they took care to ensure that the Spatial Plan of Herceg Novi was ready for the restructuring of the Institute, so that this would not be done later.
"We have a lot of capital in the Institute - the people who work there. As a state, we should do everything to ensure that the Institute survives and that the Institute is the center of this tourism in the Mediterranean. How it will end does not depend on us but on the shareholders. We have done everything "We are ready to participate in facilitating the restructuring and help in the percentage that is possible, considering the Law on State Aid," Radunović said.
The Institute's current debts to creditors amount to 25 million euros, plus five million in loans that must be returned to Žarko Rakčević's "Vili Oliva" company, which saved the Institute from the blockade in July with that sum, and the claims of employees based on lawsuits due to the reduction of wages in the past years, which can amount to six million euros.
The government and Rakčević agreed in June to enable the unblocking of the Institute's account with five million each, as well as to create a restructuring plan within six months.
As it was announced at the time, it was also agreed that after the development of the plan, the recapitalization of the Institute of ten million euros or more would be made possible, as well as that, according to the law on state aid, only within three years after that, if the company operates in a sustainable manner , significant investments in the development of the Institute may be possible.
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