While waiting to see whether the Privatization and Capital Projects Council will give the green light for the restructuring of the Hotel Group (HG) "Budvanska Rivijera", the largest hotel company majority-owned by the state, has received another hotel.
HG "Budvanska rivijera" took over the A2 facility with 26 hotel units, which is part of the "Cristal" hotel complex in Petrovac, from the company "Euromix trade", under a contract concluded by the two companies at the end of December.
"We have accepted the proposal of 'Budvanska rivijera' to resolve the dispute over the construction of the 'Cristal rivijera' hotel in Petrovac, in order to create conditions for the continuation of the implementation of the aforementioned investment. The agreement between 'Euromix trade' and HG 'Budvanska rivijera' was signed at the end of December and we are fulfilling the obligations we have undertaken in full," the company "Euromix trade" was told to "Vijesti".
The management of HG “Budvanska rivijera”, when he was at the head of the Board of Directors Mijomir Pejovic, Half a year ago, an agreement was reached whereby "Euromix" committed to settling debts under a loan it took out eight years ago or to hand over ownership of the facility, whose value is estimated at around six million euros.
The agreement, which was concluded at the end of December, stipulates that "Euromix" has 90 days to pay "Budvanska Riviera" 2,7 million euros, otherwise the state-owned company will take over the hotel.
As "Vijesti" previously reported, "Euromix" took out this loan from the Investment and Development Fund (IDF), but did not repay it, but rather "Budvanska rivijera", which was a co-debtor. IDF was transformed into Razvojna banka at the end of 2024. In order for the agreement to be signed before a notary, the consent of that bank was also required.
"Euromix" had previously stated during extensive negotiations that it had secured a partner who was ready to enter the entire project and finally complete the hotel complex right next to Petrovac beach.
The joint venture agreement between "Budvanska rivijera" and "Euromix" was concluded at the end of May 2011.
Only at the end of March 2014 did the then Ministry of Sustainable Development and Tourism issue a building permit for the reconstruction of the “Cristal Riviera” hotel, and the deadline for completion of the works, in accordance with the joint construction contract, was set at September 27, 2016. In the contract, “Euromix” undertook to functionally separate the capacities belonging to the “Budvanska Riviera” hotel in a separate construction wing towards the “Palas” hotel and to equip them according to the standards for a five-star hotel category.
In December 2017, a loan agreement was concluded between the former IRF and the company "Euromix", which stipulated that the approved funds would be used to complete the construction and exploitation of the hotel. On the same day, a debt assumption agreement was concluded between IRF and "Budvanska rivijera", all in connection with securing a loan of 4.000.000 euros.
Since "Euromix" did not settle its obligations under the loan agreement concluded with IRF, "Budvanska rivijera" paid it.
The total principal amount of 2,55 million euros that "Budvanska rivijera", as the borrower of the loan, has already paid instead of "Euromix" by 31 October 2024, as well as the amount of 156 thousand euros, consisting of three annuities, which "Euromix" is obliged to pay. In addition, "Euromix" is obliged to pay "Budvanska rivijera" the corresponding interest at a rate of four percent per annum, starting from the date of each individual payment by the state-owned company.
As stipulated in the agreement, if "Euromix" does not settle its obligations within the stipulated 90-day period, the A2 facility with 26 hotel rooms will become the property of "Budvanska Riviera".
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