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Response to misleading statements by Mr Janne Harjunpää, BAMC

It is difficult to make comments on biased interpretations by Mr Janne Harjunpää from BAMC, since it is obvious that the main motif of his appearance in a broadcast on RTV Slovenija is to divert attention away from the difficulties encountered by BAMC on account of their modus operandi. The fact is that almost each of his sentences should deserve comment, since his appearance is filled with substance that misleads and is based solely on half-truths or even…


An appearance with such a motif and the already mentioned substantive approach can most certainly serve one purpose solely: justifying the activities performed by BAMC in the past that were without foundation in the law or even against the law.

We certainly feel we have to communicate repeatedly to the public – as already on several occasions so far – at least a few truthful findings, which in their own right deny the misleading statements by Mr Janne Harjunpää from BAMC.

1. Characterization  of the proposal for preventive restructuring proceedings with the expression “utterly unprofessional plan” difficult stands a critical analysis, since this proposal is based on the study, which on request by BAMC and other creditors, was prepared by an USA consulting firm that specializes in hospitality industry. The study and the proposal itself do not only present the development of the company Sava Turizem, but above all the effects that consolidating  this company with the other two tourism companies  (Istrabenz Turizem, d.d., Hoteli Bernardin, d.d.), in which Sava d.d. holds equity shareholding, can bring. This is the fact that Mr Janne Harjunpää intentionally or unintentionally skips and due to which he evidently does not want to talk about the role of Sava d.d. in the integration process (consolidation) of the three tourism companies. In addition to the successful operations of the companies on the independent basis, it is precisely the consolidation that will strongly enhance the assets in all three companies over the next years.  In this view, a true strategic partner will find primarily Sava d.d., but also individual companies, of even increased interest, and then the realized price will be much higher owing to the enhanced assets. This brings possibility for a significantly higher repayment of taxpayers as this is presently the case. 

2. Regarding the deceit saying that we prevented the auditor, with whom BAMC alone on behalf of the Management Board of Sava d.d. signed the contract, to begin the work   (Mr Janne Harjunpää: "…our restructuring advisor, the auditor, was denied to enter the company’s building"), we explain here that the audit performed by one of the auditors classified in the “Big 4” group is in its final phase. The decision by the Management Board of Sava d.d. that the same auditing procedure is performed by only one auditor, and not that each creditor  has their own auditor, is based on the expert opinion prepared by the Agency of the Republic of Slovenia for Public Oversight of Auditing. It is not true that the Management Board of Sava d.d. does not wish an independent audit as misled by Mr Janne Harjunpää, BAMC, but it proves an expertly grounded and professional approach by the Management Board of Sava d.d.

3. The statement by Mr Janne Harjunpää that BAMC provided Sava d.d. with cash is not only misleading but absolutely untrue. Sava d.d. was and is solvent. The management of Sava d.d. provided and is still providing suitable sources for assuring the adequate level of liquidity level.  Not only that Sava d.d. and the companies of the Sava Group received not even a single euro for extra liquidity from the banks in the past four years, but it was the other way around.  During this period, the Sava Group paid to banks over €140 million of the principals and interests.  

4. As regards the cooperation with BAMC in the compulsory settlement proceedings, it should be emphasised anew that BAMC formally joined the group of applicants of the compulsory settlement proceedings only based on the decision by the court. The court further calls on all creditors to collaborate in a fruitful manner in order to reach a joint proposal of financial restructuring for Sava d.d. as soon as possible. BAMC being only one of the eight applicants of the compulsory settlement proceedings, regretfully, does not want to cooperate with the other parties, but wishes to prepare the financial restructuring plan for Sava d.d. on its own, as also evidenced by the corresponding minutes.  We shall not forget the fact that BAMC, though the largest creditor, cannot vote through the financial restructuring plan on its own, as well as other creditors cannot pass the plan without BAMC.  

5. The sale of the shareholdings (shares) that Sava d.d. has in  Gorenjska banka d.d. was a constituent of the preventive restructuring plan and will, by all means, remain part of the financial restructuring in the compulsory settlement proceedings. Owing to repayment of debts, Sava d.d. namely has to sell its financial pillar, while Sava’s development strategy is connected with its tourism business. Sava d.d. began it sale procedure already in June, but BAMC stopped it by arguing that exactly BAMC has to actively participate in selling Gorenjska banka d.d., whereas based on its recent decision, the Bank of Slovenia reactivated the sale with a clear request for the sale to be finalized within a very short period of time, i.e. six months. 

6. Making insinuations with regard to the relationship between Sava d.d. as the owner and Sava Turizem as a subsidized company, Mr Janne Harjunpää, BAMC, tries again to strengthen the statement by BAMC given on numerous occasions saying that Sava d.d. is exhausting its daughter company, which, consequently, cannot make investments in maintenance and development.  Sava d.d. does not exhaust Sava Turizem as already pointed out in our statements repeatedly. All that is clear from cash flow statements, announcements and reports, which as a listed company Sava d.d. is due to release publicly. Furthermore, Sava Turizem does not suffer from lack of capital, etc. To substantiate the statement, we here provide several figures. Sava Turizem d.d. has capital of almost €100 million, the relation between net financial debt and EBITDA, as an indicator of financial soundness, will amount to 3.1 at the end of 2015, which is due to repayment of financial liabilities and an over 80% improvement in EBITDA compared to 2011. In addition, cost rationalisations to the amount of €7 million annually made a significant contribution to the improved EBITDA. The rating of the company is high. We further refer to the fact that in accordance with the valid agreement  made with the crediting banks, the company invested in improvement of capacities to the amount of €31 million during the period 2011-2014. 

Sava d.d.
Corporate Communications

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