The government gave up the sale of the first phase and the complex near Tito's villa, the method of recapitalization remains controversial

The continuation of the Assembly of Shareholders of the "Simo Milošević" Institute was postponed until January 21, so there was no vote on the Restructuring Plan and the Decision on Recapitalization today.

According to "Vijesti" information, by then the changes requested by the leading minority shareholder of "Vila Oliva" Žarko Rakčević will be made in the Restructuring Plan, and they refer to the abandonment of the sale of the first phase of the Institute, so that only the children's department can be sold to the Government for the needs elementary school in Igalo.

There was no agreement on the method of recapitalization, because before the session the Government offered a different proposal compared to the one on the agenda, which the small shareholders consider to be illegal.

Also, Rakčević demanded that the Government abandon the intention to convert the land in the Institute complex, near Tito's villa, into a construction site for the construction of apartments and business premises, and then sell it. The government accepted his request as well.

It remains until January 21 to try to reach an agreement on the method of future recapitalization, because today the Government submitted a different proposal for a decision on recapitalization to the Shareholders' Assembly, according to which the Government would be privileged in obtaining new shares through recapitalization compared to other shareholders. That is, small shareholders would not be able to participate in the recapitalization in proportion to their current percentage participation.

Rakčević said at the Assembly that this proposal is against the Law on Business Companies and the Law on the Capital Market and that he will not support it. In this way of recapitalization, the state would get an additional over ten percent of shares from the invested 15 million, while "Vila Oliva" with an additional investment of about 2,8 million would have a decrease in participation from 27 to 24 percent.

At the Assembly, Rakčević proposed that "Vila Oliva" cover all the Institute's debts with 23 million euros and save the company from bankruptcy. For the time being, the government rejected that proposal, explaining that this shareholder would then have 41 percent of the shares.

"It is not true that this restructuring plan and this type of recapitalization is the only way to get the Institute out of the crisis. The EU norms on state aid say that it is the last form of saving a company and that until then all other methods must be tried. Preference is given to private capital , to protect the shareholders of Manj and by all market means of saving the company. We offered to cover all the Institute's debts ourselves, as well as to return the land in the Institute's complex, which is now owned by the state, to the Institute so that the company could to take long-term loans and provide the money for restructuring itself. We have documentation from 1996 and 1997 where the state received shares of the Institute on the basis of this land, so the land had to be registered with the Institute," said Rakčević to "News".

He confirmed that he was against the Government's intention to turn the complex of land near Tito's villa into construction land for the construction of a residential and business complex.

In order for the Restructuring Plan to be adopted, it needs to be voted for by shareholders who own at least two-thirds of the shares. The state owns 56,4 percent of the shares, that is, for the successful adoption of the plan and the decision on recapitalization, they need an agreement with "Vila Oliva", which owns 27,4 percent of the shares.