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Correction of inaccurate statements in relation to BAMC published in media

We publish corrections of news reported in the media in order to ensure the public is accurately informed about matters involving BAMC.

  • Correction of misreported facts regarding BAMC’s involvement in the restructuring of small and medium enterprises, published in the Mladina magazine on 14 August 2015.

Below is an accurate presentation of the relevant facts and information.

Immediately after taking over distressed assets, the Bank Assets Management Company prepared a management strategy for each individual case, regardless of the company size, and has been implementing these strategies consistently. It is therefore not true that BAMC does not get involved with small and medium enterprises unless they are connected to larger systems, as published in Mladina magazine on 14 August 2015 under the heading “More Exaggeration” (Spet pretiravanje). It is true, however, that small and medium enterprises are a much less attractive topic for the media, and so many success stories are usually overlooked.

  • Factual correction of falsely reported information regarding compulsory settlement proceedings against Sava, d.d., published in the newspaper Dnevnik on 27 July 2015.

Below is an accurate presentation of the relevant facts and information. 

On June 23, BAMC achieved a major court victory against Sava d.d. It was then that the District Court in Ljubljana published its ruling, bestowing upon BAMC’s status of the initiator of compulsory settlement. As the judicial proceedings move forward, BAMC’s legal strategy with regard to Sava, d.d. is also changing according to the circumstances in the respective judicial proceedings, all with the goal of maximizing recovery of the debt of Sava, d.d. for the Slovenian taxpayers.

Dnevnik falsely reported that BAMC had “lost another battle” in court, having filed the proposal to constitute a committee of creditors with rights of separate settlement before its status as the initiator of the compulsory settlement had been formally granted by the court. At the time, BAMC’s legal strategy in the compulsory settlement was different, as can be seen from the aforementioned court ruling – which is perfectly sensible and BAMC has no intention of appealing against it. 

The court will rule on the secured creditors’ committee only once the financial restructuring plan has been submitted, based on which it will be proven that the restructuring of Sava, d.d., cannot be successful without restructuring the secured claims and hence constitution of the secured creditors’ committee. BAMC also expects to be granted a place in the unsecured creditors’ committee by the court, because, in addition to the 35.8 million EUR of unsecured claims resulting from the insufficient value of the pledged collateral, it also indisputably holds half a million EUR in claims which never had any collateral.

BAMC is putting its efforts into preparing a professional, transparent and realistic financial restructuring plan which will recover 123 million EUR of Sava d.d.’s debt for the Slovenian taxpayers.

  • Correction of falsely reported information about the BAMC’s role in the sale of Intereuropa, released in the newspaper Dnevnik on 2 July 2015.

Below is an accurate presentation of the actual facts.

BAMC has no equity stake in the company Intereuropa, as can be seen on our website. It also did not take join the consortium for the sale of said company. This information was falsely reported in newspaper Dnevnik on 2 July 2015 under the heading “Intereuropa and its goals are not in shape”, claim that the BAMC had taken over NKBM’s equity stake in said company. Similarly, it was falsely reported that the BAMC joined the consortium of sellers.

  • False reporting regarding the collateral pledged as security for the loans of Sava d.d., published in Dnevnik 10 June 2015

Below is an accurate presentation of the actual facts.

Yesterday, 9 June 2015, BAMC received the decision of the Ljubljana District Court, ordering KDD to re-register the liens of BAMC to the relevant sub-accounts, in parallel with the execution of the decision on the temporary transfer of stock of Sava Turizem d.d. back to Sava d.d., effectively restoring the situation of 28 May 2015, i.e. one day before BAMC had realized its matured claims against Sava d.d. The court also ruled that Sava d.d. is prohibited from selling, encumbering or otherwise disposing of the securities of Sava Turizem d.d.. This means that the BAMC has managed to revert to the situation before it initiated foreclosure on the pledged Sava d.d. assets as an additional measure to protect the assets pledged to it ever since the exposures were acquired from NLB.

Dnevnik published false information on 10 June 2015 under the headline “BAMC loses assets pledged as security for the loans to Sava”, namely that the BAMC had lost the assets pledged as security for the loans issued to Sava. It should also be noted that even the first temporary injunction issued by the Ljubljana District Court on 4 June 2015 at the request of Sava d.d. clearly indicates that the liens registered in favor of the BAMC is not in dispute. Since the BAMC had informed the media about the second temporary injunction of the Ljubljana District Court issued on 8 June 2015, this makes the information contained in the article all the more unreasonable.

  • Correction regarding BAMC’s acquisition of ownership of the Celovški Dvori residential complex, published on 10 June 2015 in the newspaper Finance.

The facts are presented below.

BAMC is not yet the owner of apartments in the Celovški dvori residential complex, since an objection to the final distribution of assets has been filed in the procedure involving the transfer of property rights from the bankruptcy trustee to the BAMC as the creditor with exclusion rights. The objection is currently being decided by the cognizant court. It is in the interest of BAMC to become the legal owner of the real properties associated with the bankruptcy estate of Vegrad AM d.o.o. It is therefore false that BAMC has been sitting idle with regard to the apartments for over a year, as published in the articles Battle of the Bad Banks: Discounts Hit the Ljubljana Real Estate Market Hit and Can a Slovenian Citizen Afford to buy an Apartment? in the newspaper Finance on 10 June 2015. BAMC explained the situation of Celovški Dvori to the journalist of Finance before the aforementioned articles were published, so it is all the more puzzling why these falsities were published.

  • Misinformation published in the daily newspaper Dnevnik regadring the procedures involved in the sale of claims against the companies ACH, Adria Airways, Elan and Polzela  to the investment bank Bank of America Merrill Lynch (BAMLI).

Below is an accurate presentation of the actual facts.

With each transaction, BAMC will focus on the principle of maximizing the disposal value, and it did the same in the transaction involving the sale of claims against the aforementioned companies to the investment bank BAMLI. BAMC has received several bids and asked the interested bidders who have placed bids significantly higher than the rest, to improve their offers and invited them to negotiate. The bundle of claims against the companies ACH, Adria Airways, Elan and Polzela were sold to the highest bidder. It is therefore untrue what was publsihed in the article under the heading Claims Against ACH End up in the Hands of a Russian Hedge Fund, published on 12 May in Dnevnik, claiming that BAMC never asked the competing bidders to improve their offers. This falsity has so far been published in Dnevnik on multiple occasions, despite the fact that we have explained to certain Dnevnik’s journalists that this is not in fact true, and the authors of the article might have double-checked this information with BAMC. It should also be pointed out that, through strict application of maximizing the value of its assets, BAMC is independent in passing expert judgment as to when is the right time to sell a particular asset, and the approach it will choose to do so.

  • Correction of falsely reported information regarding the share value of Pivovarna Laško at the transfer of the equity interest from NLB to BAMC, released in the newspaper Dnevnik on 17 April.

Below is an accurate presentation of the actual facts.

The company Pivovarna Laško is listed on the Ljubljana Stock Exchange, meaning that at the time of transfer, BAMC paid NLB the purchase price for its stake in Pivovarna Laško relevant to the specific date, at the relevant price listed on the Ljubljana Stock Exchange that day. In the case concerned no appraisals were prepared by the appraisers, meaning that the information published in Dnevnik in the article under the title “NLB’s Sale creates a profit for the bad bank”, published on 14 April 2015 and claiming that the appraisers had undervalued the shares of Pivovarna Laško, is untrue and misleading.

Furthermore, we would like to note that the profit generated in BAMC is returned back to the national budget, the same source from which the funds for rehabilitation of the banking sector originated.

  • Correction of falsely reported information about BAMC case manager, released in the newspaper Dnevnik on 9 April.

On 9 April 2015, an article by Matjaž Polanič and Tomaž Modic was published in the daily newspaper Dnevnik and on its website, www.dnevnik.si under the heading “Valuator responsible for conducting controversial appraisals in the past is now performing valuations for BAMC”, which misrepresents certain facts.

Below is an accurate presentation of the relevant facts and information.

The Marija Cerjak’s opinion, which was formally reviewed by the Agency for Public Oversight Of Auditing, as reported in the article, was issued in August 2011. We would like to stress that we offer no comment on whether or not this opinion was in reference to the debtor Konstruktor, as this information was not mentioned in the formal decision and we therefore never released it to the journalist concerned. The main criticism expressed in the decision of the Agency for Public Oversight Of Auditing was that Ms Cerjak had issued a positive opinion even though the debtor’s equity in the financial restructuring plan (financial projections) remained negative even after the compulsory settlement process was completed. The writers of the article overlooked the fact that in the context of long-term solvency, negative equity is regulated in the Financial Operations, Insolvency Proceedings and Compulsory Dissolution Act (ZFPPIPP), which did not prohibit negative equity at the time the opinion concerned was issued. The amendment to ZFPPIPP-F, which requires positive equity for medium-sized and large enterprises, was enacted at the end of 2013. In the case in question, Marija Cerjak then filed a motion for a procedural review with the Higher Court of the Republic of Slovenia. The case is ongoing and no final decision has yet been made. The Agency’s decision, however, clearly states that no criminal charges or other claims are being brought against the case manager. 

It was also explained to the journalist that according to Ms Cerjak’s track record as a certified valuator, less than half are debtors in bankruptcy, which was mentioned in the article. What is missing, however, is a fact that was also presented to the author: according to the statistics presented by the Slovene Institute of Auditors, the average valuator’s track record is to have over 90% of their debtors end up in bankruptcy. 

It is also false that Marija Cerjak occupies one of the key positions at BAMC, that she had managed or coordinated a significant share of the procedures involving the valuation of assets, or that she had been involved in preparing the valuation for ACH. Ms Cerjak does not in fact occupy a key management position in BAMC, she is one of 22 case managers employed with the company. She also was not involved in managing or coordinating a significant share of the procedures involving the valuation of assets. The internal valuation was always the fruit of the entire team’s collective efforts (consisting of an analyst, legal expert, case manager and head of credit management). All valuations in BAMC based on methodology approved by an external auditor, which in the case of holding companies (such as ACH) includes the subsidiaries’ cash flows, if this is relevant to the case in question. It should be added that the sale of claims against ACH as part of a four-investments bundle was successfully finalized even though the company was on the brink of bankruptcy just a year prior to the bankruptcy. BAMC has no knowledge of any independent valuations of ACH that the article mentions.

It is also false that BAMC had started preparations for the sale of Meja Šentjur and Hotel Marita back in November 2014. Last year BAMC organized a public auction to sell the pledged equity stake in Hotel Marita in order to avoid sending the company into bankruptcy. At the time of the auction, certain legal and economic risks arose, forcing BAMC to cancel the auction. After the bankruptcy proceedings started, BAMC proactively approached the bankruptcy trustee with the proposal to keep Hotel Marita in operation and find the most suitable tenant via public competition. As the a lienholder on the real estate - Hotel Marita - BAMC presented the bankruptcy trustee with the expert criteria for selecting the tenant, while the actual decision on selecting the tenant was fully within the discretion of the bankruptcy trustee. BAMC explicitly requested that no pre-emption rights should be arranged with any of the tenants. In March, without the BAMC’s knowledge, the bankruptcy trustee signed an annex to the tenancy agreement, setting up the existing tenant’s pre-emption rights. When the court asked BAMC for its opinion in the matter, BAMC protested against the pre-emption rights and proposed to the court that it overrule the annex to the tenancy agreement, whose only content is the inclusion of the pre-emption rights, all other terms remaining the same.

As for the company Meja Šentjur, we want to point out the misleading information that the company is “fully in the hands of the bad bank”. Other financial creditors as well as the bankruptcy trustee of the company PSZ, d.d., whose majority shareholder is Meja Šentjur, will also play an important role in the restructuring efforts. Even if the compulsory settlement proceedings continued, BAMC would not have sufficient votes to independently decide its fate. 

  • Correction of misrepresentations regarding the release of the BAMC sale portfolio on the BAMC website, as aired on the 24 ur news program, POP TV.

Below is an accurate presentation of the relevant facts and information.
As we had explained in our response to the POP TV journalist’s questions prior to the production of her report containing inaccurate information, the aim of BAMC is to provide potential buyers with additional information about potential investment opportunities by publishing details about its assets available for sale. Any offers received with regard to the purchase of individual claims or equity stakes which are already part of separate procedures naturally do not mean that these procedures will be affected in any way.
We also explained that in cases where sales procedures are already in progress, these procedures will be proceeding as agreed. In these cases, BAMC has established good collaboration with representatives of other owners, with due consideration to the provisions of takeover laws and the interests of each shareholder involved. It is therefore not true that BAMC is “flying solo” in these sales procedures, as seen on POP TV’s 24 ur on February 4.
It is also not true that this could mean “lower costs and lower proceeds” because in each case, BAMC is pursuing the goal of maximizing proceeds from the sale of each investment in the portfolio, while reducing costs involved in the transaction. All of this has been explained to the POP TV reporter in our responses to her questions prior to the production of the news report.

  • Correction of misrepresentations regarding accounting and IT services provided by external vendors, as aired on 27 January 2015 on the 24 ur news program, POP TV.

Below is an accurate presentation of the relevant data and information.
BAMC is currently in the final stages of consolidating loans from the different banks in a single, integrated platform, which will significantly facilitate IT services. The data is being migrated to the Probanka IT system, as this was the most cost-effective and technologically optimal solution available at the time.
BAMC is using the Probanka software to manage IT services, which mostly involves operational loan management tasks such as interest billing and transaction management related to over 5000 loan contracts which have so far been migrated into the system.
The Unija accountancy firm is performing routine accounting services connected to the company’s day-to-day operations, such as: ML and subaccounts management, tax bookkeeping, financial bookkeeping, fixed assets bookkeeping, financial statements, tax calculations, calculation of payments to individuals, other reports to state institutions, E-accounting Unija.
It is therefore not true that both Probanka and Unija are providing accountancy services to BAMC, which was aired on 27 January 2015 on POP TV, since Unija provides general accountancy services while Probanka provides specific IT services related to the operative loan management.

  • Inaccurate reporting regarding the ownership and sale of apartments in Celovški dvori, published in Finance on 15 January.

Below is an accurate presentation of the facts concerning the status of ownership and sale procedures in Celovški dvori.
BAMC does not yet own apartments in Celovški dvori, nor does it have any control over them. In January 2014, BAMC proposed to the court and the bankruptcy trustee that all unsold apartments should be transferred to BAMC as so-called “non-disposable assets”, so that BAMC could begin to sell them. Despite multiple appeals, the transfer process has still not begun. The idea presented in the title of the article “One Year Later, BAMC Still Sitting on Celovški Dvori” published on 15 January in Finance, is therefore false.
It is also false that BAMC had moved in to stop the sale of apartments in January 2014. As creditor, BAMC was not able to stop the sale, and did no such thing. Under applicable law, acting in the capacity of a creditor, the BAMC has the right and obligation to express its opinion regarding the selling prices. Because the prices offered for the apartments were less than half their liquidation prices (less than €1,000/m2), the BAMC did not express a positive opinion, but this did not stop the sale process. As it turned out, BAMC’s opinion was valid, since the bankruptcy trustee continued selling the apartments at higher prices thereafter. In accordance with applicable law, BAMC has the obligation to realize the maximum possible value from the assets it took over. Selling these assets at prices higher than 50% of the liquidation value has already increased the bankruptcy estate by several ten thousand euros.

  • Incorrect reporting on the subject of activities performed by Quartz&Co. on behalf of BAMC, as published in Dnevnik on 17 December 2014.

For clarification purposes we publish below a factual account of the activities performed by Quartz&Co. with and an explanation of the reasons

The task of recapitalizing the banks is defined as one of BAMC’s principal activities in the Act Defining the Measures of the Republic of Slovenia to Strengthen Bank Stability (ZUKSB). At a meeting with the Ministry of Finance and the Bank of Slovenia, which took place in the beginning of April 2013, the BAMC Board of Directors was informed that in addition to building up the BAMC by the end of June, it would also need to make all the arrangements necessary for the recapitalization of the banks of systemic importance, as well as execute the first transfers from the banks to the BAMC and participate in urgent restructuring cases. The Board of Directors thus immediately started planning and made the necessary arrangements to tackle these challenges and fulfill the new requirements. This information has been available on the BAMC website since March 2014. The claims made in the article entitled “Is the Court of Audit report going to seal the BAMC managers’ fate?” are therefore misleading, since the BAMC was never involved in the actual recapitalization of banks as under the law, it was tasked with making the preparations for the recapitalization. The BAMC was informed about the new change of strategy in May 2014, as the Ministry of Finance informed the Board of Directors that the NLB would not be recapitalized by BAMC but by the government itself instead.
Another incorrect statement presented in the same article was that the BAMC had ordered and paid for another set of services intended to assist with the due diligence in NLB, which the DUTB was never authorized to do, nor is it true that the BAMC had never been allowed entry into the NLB. While it is true that the BAMC was in fact never involved in the process of preparing the selection of claims to be transferred, it was still informed of these claims and used available data to conduct the preliminary arrangements (recovery assessments, insurance quality assessments, claims contents etc.) in order to be able to execute the transfers within the timeframes set by the government. BAMC had also informed the government of its findings. The European Commission then intervened, of which the BAMC was informed 10 days prior to the deadline scheduled for the transfers.

  • Correction of the news published in the Dnevnik daily newspaper on 16 December regarding BAMC’s plans for Mladinska knjiga Založba

Below we publish the corrections of the inaccurate unofficial information regarding BAMC’s plans for Mladinska knjiga Založba reported

BAMC is not planning to publish the fourth call for offers to purchase Mladinska knjiga Založba in the coming weeks, as written in the Dnevnik article “Mladinska knjiga Založba to be chopped-up before sale”. It is also false that BAMC has already prepared evaluations intended to serve as a basis for division of loans and real estates to a newly established company. This information, allegedly originated from unofficial sources, is therefore not based on fact. As we have already explained and as the article itself states, the BAMC is currently in the final stages of preparing the strategy for the next steps involving MKZ and expects the strategy to be approved early next year.

  • Correction of information on the associations of BAMC’s CEO Torbjörn Månsson with Quartz&Co., shown on the Televizija Slovenija evening news on 4 December 2014.

Presented below are the facts regarding Mr Månsson’s associations with Quartz+Co.

Mr Torbjörn Månsson severed all links to Quartz+Co and sold his equity share prior to his August 1 appointment as CEO of BAMC, and in addition, the BAMC was no longer in business with said company at the time in question. This information has been published on the BAMC website since 31 July 2014. The claim that Mr Månsson was a shareholder in Quartz&Co, as presented in the evening news, is false.

  • Correction of information on the associations of BAMC’s CEO Torbjörn Månsson with Quartz&Co., published in the Večer daily newspaper on 3 December 2014.

Presented below are the facts regarding Mr Månsson’s associations with Quartz+Co.

Mr Torbjörn Månsson severed all links to Quartz+Co and sold his equity share prior to his August 1 appointment as CEO of BAMC, and in addition, the BAMC was no longer in business with said company at the time in question. This information has been published on the BAMC website since 31 July 2014. The information published in the Večer newspaper under the title “Bad Bank: Lower Salaries or New Directors” claiming that Mr Månsson is a shareholder in Quartz&Co. is false.

  • False reporting regarding the alleged meeting fee payments to members of the Pivovarna Laško supervisory board and regarding the BAMC’s working procedures in Pivovarna Laško, published on the “24 ur” evening news on POP TV.

Below is an accurate presentation of the relevant data and information.

In accordance with the BAMC policy, Pivovarna Laško supervisory board member Janez Škrubej forwent remuneration for his participation in the supervisory board and is receiving only travel expense reimbursements. This information can be verified in Pivovarna Laško. The allegations made in the 24 ur evening news show, claiming that Mr Škrubej would make between €30 and €40 thousand in Pivovarna Laško meeting fees, are false.
The same news report also distorts facts by reporting rumors regarding alleged procedures employed by BAMC acting as shareholder of Pivovarna Laško. BAMC is acting as a responsible shareholder and manages its equity stake in Pivovarna Laško actively.

  • Correction regarding claims made in the newspaper Finance, in connection with the publication of BAMC salary figures.

Below we include accurate information with regard to which data BAMC is required to publish under applicable law.

On the subject of its employees’ salaries, the Bank Assets Management Company is bound to abide by the provisions of the Employment Relationships Act. BAMC employees are not public servants and as such are not subject to the provisions of the Civil Servants Act. Consequently, BAMC is not required to disclose information regarding employee salaries under the Act on the Access to Information of Public Character (ZDIJZ). With the exception of the company management’s salaries, employee salary figures are not public information. We would like to add that BAMC is continuously publishing all information required under applicable law, as it had, for example, done with information about its contractors, transferred receivables, as well as other information required under the ZDIJZ.

  • Correction of inaccurate statements in relation to BAMC’s receipts generated during the first half-year period of 2014, published in the newspaper Finance on the 1st of September

We provide a correction of inaccurate statements on the topic of BAMC’s receipts generated during the first half-year period of 2014, with regard to BAMC’s statutory obligation to sell assets.

Through selling its assets, BAMC generates receipts rather than revenue. During the first half-year period, BAMC generated 65 million euros in receipts, which means that during the first half-year period it reached 65% of its statutory obligation, requiring BAMC to sell 10 percent of the total value of transferred assets. Information that BAMC has generated less than 19,000 euros in sales revenue, as published in the newspaper Finance on the 1st of September under the heading BAMC Reports Loss of 7.7 Million Euros During First Half-Year Period (DUTB v prvem polletju s 7,7 milijona evrov izgube) is therefore irrelevant and inaccurate.

  • Misinformation regarding BAMC’s activities involving Cimos, published on 20 August in the daily newspaper Dnevnik.

Below we present an accurate account of the facts about BAMC’s activities involving Cimos.

BAMC was not involved in the preparation of Cimos’s proposal to repay its obligations to suppliers. The allegation published in the daily newspaper Dnevnik on 20 August, namely that the Bank Asset Management Company once again changed its position in the extremely complex remediation process, as Cimos’s proposal on the repayment of its obligations to the suppliers is significantly different from the original plan, is therefore incorrect.

Ever since May, when it reached a decision about the future of Cimos together with the four largest creditors, BAMC has been following through the plan, taking steps to ensure that the company can stay in business and downsizing is prevented 

  • Misinformation regarding BAMC’s activities involving TIB Transport, published on 19 August in the daily newspaper Dnevnik.

Below we present an accurate account of the facts about BAMC’s activities involving TIB Transport.

Like any other company whose obligations have been transferred to BAMC, TIB Transport’s case has a been appointed to a BAMC case manager, who is part of a team which also includes an analyst and legal professional. BAMC representatives have met with the management of TIB Transport on multiple occasions, as well as conducted telephone interviews and on-site visits to the company headquarters in Ilirska Bistrica. BAMC also met with the Ministry of Finance to discuss the proposed conversion of DURS’s claims to equity.

Therefore, the assertions that state creditors have no interest in keeping over 200 jobs and that TIB Transport had been unable to find a willing partner among the company’s major creditors, published in the Dnevnik daily newspaper on 19 August 2014 under the heading “When State Creditors Have No Interest in Keeping Over 200 Jobs”, are false.

The assertion that the exposure of Abanka had been transferred to BAMC is also false. BAMC is the owner of claims against TIB in the nominal sum of EUR 161,982.26, acquired from NLB on the date of the transfer of non-performing assets. BAMC has not yet acquired Abanka’s claims held against TIB.

Financial data analysis has shown that over the past four years, TIB Transport’s EBIT had been negative, ranging between 0.4 and 0.6 million euros. Furthermore, the company only operated with a profit one year over the past 15 years. Comparison of the financial figures for the first half of the 2014 period reveals a marked deviation from the targets defined in the financial restructuring plan, which is a clear indication that the plan was unrealistic to begin with.

Even if the compulsory settlement were to be confirmed and the company continued to operate, it would still require additional funding to finance the operating capital, new bank guarantees required for participation at public tendering procedures, and regular maintenance of the fleet to ensure cost efficiency. Based on the presented financial restructuring plan, like most of the other creditors, BAMC rejected the proposed debt-to-equity swap because it is of the view that the company’s management does not have a viable plan to provide the necessary funding essential for the company’s operations to continue unhindered. BAMC sent written notification of its decision to TIB Transport on 18 June of this year.

Through the debt-to-equity swap, BAMC would get a minimal equity share. In addition, BAMC would also lose all of its collateral. For this reason, the competent body decided that BAMC will not to approve the financial restructuring plan.

  • Misinformation on real estate management, published on 14 August, 2014 in the daily newspaper Finance.

Below we present an accurate account of the facts surrounding the real properties to be transferred to BAMC.

  • The following link http://www.dutb.eu/si/o-nas/pogosta-vprasanja contains the key facts and information about the management of real properties to be transferred to BAMC.
    Therefore the information published in the newspaper Finance on 14 August 2014 under the title Halo, slaba banka? Rad bi kupil stanovanje. Ne bo šlo! (“Hello, Bad Bank? I’m Looking to Buy an Apartment. Tough Luck!”), which alleges that the aforementioned link contains only information about those “visions” of BAMC that have already been made known, is false.
  • A little over one month ago, BAMC acquired about 20 properties, none of which were residential. Sales and marketing activities will begin as soon as the legal and technical review is complete. As regards the Nokturno residential project, the procedure involving the transfer of title to BAMC through judicial means is not yet complete pending the court’s decision on an appeal. Any marketing activities taken before the aforementioned proceedings have been completed would be unlawful.
  • BAMC will not engage in forced sale of real properties on a non-existing market, and will not sell its assets at any price, no matter how low. It is worth pointing out that in the event that properties are undersold, the difference is indirectly covered by the taxpayers. BAMC was not established for the purpose of selling at any cost. BAMC will abstain from comments on current and expected real estate prices, as this would be imprudent from a business standpoint. 
  • Incorrect statements regarding BAMCs financial plan on August 5th in Finance

The following is factual description of the events referred to BAMC’s financial plan:

BAMC has a financial plan in place and the plan has been approved by the Board. BAMC has also submitted the plan to its owner. The Ministry of Finance has submitted comments and BAMC has taken these into due consideration and made the supplements of the plan.

Therefore the indication that BAMC doesn’t have the financial plan in place in the article BAMC’s problem is that the government expects profit published in the journal Finance 5.8. 2014 is not correct.

BAMC further notes that BAMC will update the financial plan in accordance with the expected changes (such as the transfer of the assets from Abanka) in September. BAMC further plans to publish a summary of the updated financial plan on the portal of the Ljubljana Stock Exchange and on BAMC’s website in accordance with regulations.

  • Incorrect statements regarding the selection and commissioning of consulting services on July 31st 2014 in news broadcasts
    • 24 ur on POP TV
    • TV Dnevnik on TVS

The following is factual description of the events referred to decision on the selection and commissioning of consulting services from Quartz&Co.:

The decision on the selection and commissioning of consulting services from Quartz&Co. was passed by the Board of BAMC strictly supervised by the Non-Executive Directors. Torbjörn Månsson was being excluded from all decisions on cooperation with Quartz&Co. and did not sign the contracts. Therefore the statements in the news broadcasts on POP TV and TVS, that the contract with Quartz was signed by Mansson are incorrect.

BAMC further notes that BAMC’s internal audit and the renowned law firm Jadek and Pensa both concluded and stated that the procedures were implemented in accordance with legislation and no circumstances reflecting conflict of interests were established. All procedures are documented in the Memorandum prepared by the BAMC Board for the Commission for the prevention of corruption.

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