"Vila Oliva" paid 7 million for the Institute

"Vila Oliva" company paid its share of seven million euros in the first round of recapitalization of the "Simo Milošević" Institute on January 26. Essentially, we are respecting the agreement with the majority partner, the Government, that we will cover a third of the 21,5 million euros of accumulated losses that we did not make. The Government should, in accordance with the agreement, pay a total of 14,5 million euros in the first and second rounds," the co-owner of this company told "Vijesti" yesterday Zarko Rakcevic.

The first round of the Institute's recapitalization is underway, in which current shareholders can purchase shares from the company in accordance with their percentage of ownership. In the second round, which will start in early February, shareholders who did not participate in the first round can also pay for shares.

The government paid 4,6 million euros in the first round because it could only participate in the amount of the percentage it directly owns, not its funds. In the second round, it will be able to pay the remaining amount of 10 million.

"Normally, the recapitalization process is open and if any of the other minority shareholders are willing to participate in the recapitalization and buy the Institute's shares at a nominal price of 154,93 euros in order to cover losses - they are welcome. HTP Vile Oliva is increasing its ownership stake by only 0,6% with its 7 million euros," Rakčević told "Vijesti".

He states that the Institute's case is a good example of public-private partnership because it was saved from bankruptcy a year and a half ago through joint action.

"In June 2024, the Institute had a blocked bank account for over six months, and workers were owed four months' wages. At a time of real danger of bankruptcy, an agreement was reached to cover debts primarily to Jugobanka by having the Government pay an advance of 5 million euros for rehabilitation services, and Vile Oliva will provide a loan of 5 million euros, which will be repaid with a delay after the recapitalization, in March of this year," said Rakčević.

He states that the sale of the First Phase and other properties of the Institute has been prevented, as well as the possibility of using the land for the construction of residential and commercial buildings, while the sale of only the former children's department to the state for the needs of a new elementary school has been agreed.

"The Institute and its employees remain with their sacred and dominant function and mission of rehabilitating over five thousand citizens of Montenegro annually, or significantly over 100 thousand boarding days during 2025. Therefore, through the partnership of the Government and HTP Vila Oliva with significantly better management and the logic of a good host, the Institute has gone from bankruptcy to a net profit of over 2,5 million euros (excluding income from the sale of the Children's Department) in nine months of 2025," said Rakčević.