Restructuring Plan of the "Dr Simo Milošević" Institute Adopted

The Shareholders' Assembly of the "Dr Simo Milošević" Institute Igalo adopted today, at an extraordinary session, the Restructuring Plan, as well as the Decision on the election of members of the Board of Directors.

The new board of directors consists of Predrag Dragojlović on behalf of the Development Bank of Montenegro, Petar Rakčević and Šefik Nišić on behalf of the Vila Oliva company, Pavle Obradović on behalf of the Government, and Goran Čabarkapa on behalf of the Health Fund, reports the RTHN portal.

As the representative of state capital, State Secretary at the Ministry of Spatial Planning, Urbanism and State Property, Majda Adžović, pointed out at the session, the Restructuring Plan has been supplemented with suggestions and comments from both the majority and minority shareholders with significant participation.

"The amendments that have been communicated are included in the text of the Restructuring Plan and I can say that they represent the optimum, which will enable the Institute to not only function tomorrow, but also, with the investments foreseen by the Plan, which, as far as the Government of Montenegro is concerned, are provided for in the budget for 2025, to return the Institute to the map of exclusive health centers," said Adžović.

The representative of a minority shareholder with a significant stake, the owner of the company Villa Oliva Žarko Rakčević, explains that the outstanding liabilities in the amount of 21,5 million euros will be resolved through recapitalization, proportionally, according to the law, for all shareholders.

"Vile Oliva will cover up to seven million of those 21,5 million in losses. The government, I believe, will cover around 14,5 million and that is the most important message. In addition to covering losses, the next message is the pledge given in the Restructuring Plan and in our agreements, because it is not only important to cover losses and continue as before. It is important to invest, establish proper cooperation and ensure that the Institute survives," said Rakčević.

The Vile Oliva company believes that the Institute can be not only socially responsible, but also profitable, which, after investing and bringing the second phase into the four-star category, will ensure improved services.

Rakčević recalled that an agreement was reached with the Government that the first phase building would not be sold, and that the Children's Department building could be sold exclusively for the needs of the school in Igalo.

Executive Director Zoran Kovačević explains that the Restructuring Plan envisages resolving overdue liabilities in the amount of almost 22 million euros.

"After Jugobanka, this is a great pressure that has been on the Institute all the time and has made it difficult to organize regular activities, as well as to make plans for the upcoming tourist season. In that sense, I think that the outstanding liabilities will be resolved through joint participation, either by the majority shareholder, the Government of Montenegro, on the one hand, or by shareholders with a significant share in the capital and the Igalo Institute, on the other hand," he said.

Kovačević expects that a decision will soon be made on the sale of the Children's Department for the needs of the school in Igalo, which will, on the one hand, contribute to resolving the Institute's financial obligations, and on the other, begin to address the lack of schools in this part of the city.

Member of the Board of Directors, Pavle Obradović, points out that this is the first major investment by the Government of Montenegro in Herceg Novi in ​​recent history.

"The plan drawn up by the University of Montenegro envisages an investment of around 88 million euros in the new phase of the Institute and a profit in the following period after implementation of five to six million euros. That would be a net annual profit. Also, the school that will be built is very important for Igalo and Herceg Novi," said Obradović.

The meeting was attended by shareholders who own 328.296 out of a total of 382.351 shares, or 85,86 percent of the capital.