Today, I sent the Chairman of Sava d.d.’s Supervisory Board a Proposal for a consensual termination of the term of office of President of the Management Board in accordance with director’s service contract.
This was not the easiest decision to make, since within slightly more than four and a half years we have invested substantial efforts and thus managed with a brilliant team of associates to carry out a recovery and implementation of the outlined strategy, respectively, of the at that time heavily over-indebted, oversized and completely illiquid Sava Group. We have come up to the point, when we could successfully realize also the preventive restructuring proceedings of Sava d.d., which would provide a new development dimension of the Group.
As we know, the preventive restructuring proceedings were, regretfully, discontinued due to one of the creditors this 29 May, after which Sava d.d. was pushed in the compulsory settlement proceedings. Ever since that day, we have had to invest an enormous amount of energy and time (and also money) in endeavours for protection of the assets of Sava d.d., its owners and the equal treatment of its creditors.
It is not without significance that the Sava Group in the abovementioned four and a half year period repaid approximately €140 million in principals and interests (without raising any extra loans with the Slovene banking system) to creditor banks. Cost rationalisations were another success, since the company cut its costs by approximately two thirds.
The crucial point, however, is that our mainstay of development (tourism division) has been improving its operations year by year and is achieving record results this year.
Within the context of creating a platform for the development, Sava d.d. and its subsidised company Sava Turizem d.d. (and the companies, in which it holds equity shareholdings) provided the conditions for consolidation of the Slovene tourism industry in the broader sense.
My decision was further reinforced with the message, which I perceived at the meeting with the broader teams of both major owners (SDH and KAD) at the end of the previous week. The message was that restructuring of Sava d.d. – to be finalised with signing the Financial Restructuring Plan – could be carried out faster and without any further entanglement in the event of my withdrawal.
I am confident that my decision shall facilitate that all stakeholders reach agreements as to the Sava’s future.
Moreover, my wish is that, after my withdrawal, the owners and creditors (relieved of all the imposed personnel and other speculations) will focus more easily on the substantive challenges that Sava’s restructuring creates.
Matej Narat
President of the Management Board
Sava d.d.