|Correction of inaccurate statements in relation to BAMC published in media||24.4.2016||Press Releases|
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.
|BAMC selling shares of ETI Elektroelement as part of a consortium||1.12.2015||News|
On 26 November 2015, BAMC became the owner of 59,662 shares, or 11.97 percent of the share capital of ETI Elektroelement d.d. (“ETI”). ETI is a leading global producer of residential and commercial installations, distribution of low- and medium-voltage electrical energy and electronics and semi-conductors. In addition, it also produces technical ceramics, tools, devices and plastic products. BAMC is selling these shares as part of a consortium which appointed ALTA Skupina, upravljanja družb, d.d., as the exclusive financial advisor in the sale process.
For more detailed information about the sales process, please contact Mr Simon Mastnak, ALTA Skupina, upravljanje družb, d.d., Železna cesta 18, 1000 Ljubljana, Slovenia, phone: +386 (0)1 3 200 202, e-mail: email@example.com.
|BAMC submits two amended internal by-laws and signed employment agreements for executive directors to the Court of Audit||23.10.2015||Press Releases|
Today, 23 October 2015, the BAMC Board of Directors convened and accepted the action report prepared in response to the Court of Audit request dated 22 September 2015, urging BAMC to eliminate inefficiencies. As part of the response report, BAMC presented to the Court of Audit two revised internal by-laws:
- Instructions for tracking the prescribed statutory goals for the Bank Assets Management Company,
- Instructions regarding the procedures in the Bank Assets Management Company related to measures to strengthen the stability of the banks in the Republic of Slovenia.
Furthermore, included with the report of the Court of Audit of the Republic of Slovenia were the new employment agreements signed by executive directors Dr. Imre Balogh, Janez Škrubej and Aleš Koršič, which are completely aligned with the current Remuneration Policy, as adopted by the Government of the Republic of Slovenia on 5 March 2015.
|BAMC filed a motion to grant BAMC the powers to recall management of SAVA d.d.||23.10.2015||Press Releases|
BAMC has today filed a motion to the District Court of Ljubljana to grant BAMC the powers to recall the entire Sava d.d. management.
Sava d. d. is insolvent, also having negative capital and a company without any true operations. Due to this fact and also due to the inconsistent restructuring efforts of the current management, BAMC has lost its trust in the current management´s ability to run the vital restructuring. This move by BAMC will not have any negative effect on the operations on the operating companies in the group, like Sava Turizem d.d. and Gorenjska banka d.d.
BAMC´s intention is to appoint in coordination with other creditors new management with relevant experience and expertise to stabilize the situation, as did in the case of Avtotehna d.d., where the outstanding results can already be seen.
|BAMC extends the deadline for the submission of binding offers||20.10.2015||News|
The Seller hereby consents to the extension of a binding offer submission in the process of the sale of claims of AERO HOLDING d.o.o. until 6th November 2015 by 16:00.
All other deadlines denoted in the public tender (i.e. the 8-day deadline for the selection of the highest bidder) are prolonged to a reasonable extent. For any further information please do not hesitate to get in touch with the designated contact person denoted in the public tender.
|National Investigations Bureau performs investigation, no-one was detained||15.10.2015||Press Releases|
A criminal investigation procedure was carried out on BAMC premises this morning, as was expected given the announcement made by the Court of Audit. NPU has not detained any employees, nor was anyone taken in for questioning.
As the Court of Audit has stated before in its public announcements, it forwarded its findings from the audit of BAMC's operations in 2013 to the NPU, whose duty is to investigate such findings. The NPU has not detained any employees, nor was anyone taken in for questioning.
Investigators reviewed the documentation and business premises in all three floors of BAMC. The investigation pertained to the operations in 2013 and 2014, especially with regard to the contracts signed in that period. BAMC is providing its assistance to the law enforcement agents and investigators so that facts can be investigated and documentation obtained.
|Marko Simoneti and Imre Balogh take the helm of BAMC||12.10.2015||Press Releases|
At today’s meeting of the BAMC board of directors, Dr. Marko Simoneti was appointed chairman of the board of directors. In accordance with Article 273 of the Companies Act, the Board also appointed Imre Balogh as the new CEO. Janez Škrubej and Aleš Koršič stay on as members of the board of directors of BAMC. Despite having only five members, the quorum of the board of BAMC has been reached.
Today, the Board of Directors took note of last week’s decision of the Government of the Republic of Slovenia to dismiss Dr. Lars Nyberg from the function of chairman of the board, and recall of Torbjörn Månsson as member of the board. The board also dismissed Torbjörn Månsson from the function of CEO of BAMC. The board of directors proposed to amicably terminate the contract with Torbjörn Månsson and proposed an orderly and efficient transition process, which is to take place over the course of the next few days. The board members expressed gratitude and appreciation for their important contribution to the establishment and development of the company from its establishment to this day.
Imre Balogh’s temporary appointment as CEO will be effective as of tomorrow, pending execution of an international recruitment process for the position of permanent CEO, as stipulated in the ZUKSB. His salary will be in line with the applicable BAMC remuneration policy, while his function as non-executive director will be suspended meanwhile. Over the next few days, executive directors Janez Škrubej and Aleš Koršič will be presented with a new employment agreement, which will be fully aligned with the applicable remuneration policy of BAMC.
To ensure a credible recruitment process for the position of the new permanent CEO, the board of directors decided to present the following proposals to the government:
- to appoint a new non-executive director in order to strengthen the current board of directors. Given the current structure of the board, the board also proposes to the government to strengthen the independence of the board with a new member with international experience in credit workout;
- to strengthen the corporate governance of BAMC, the Board proposes to clearly define in the Articles of Association or in the ZUKSB that the non-executive directors have the power to appoint and dismiss the executive directors, who are at the same time also automatically members of the board;
- to define a new remuneration policy in such a way as to include an internationally competitive compensation package to be attractive to international and local candidates for the position of executive directors of BAMC.
|A letter from Metod Dragonja, state secretary at the Ministry of Finance||12.10.2015||Press Releases|
On behalf of minister of finance of Republic of Slovenia dr. Dušan Mramor I would like to convey our big respect for the contribution which Mr. Lars Nyberg and his team provided to establish Bank Assets Management Company in Slovenia and to run this institution successfully. Undauntedly BAMC has brought new approach in recovering bad loans and was successful in solving problems connected to creation of NPL's in Slovenian banking sector. Resent development of situation in institution itself and high public pressure related to remuneration do not allow us to run the institution with the same team in the future. We shall provide appropriate succession, what shall be announced on Monday, October 12, 2015. We should also point out that changes in the management are not politically motivated. We all should be aware of the fact that Slovenian Parliament in July 2015 passed Assets Management Strategy related to state owned enterprises which applies also to individual exposures of BAMC. Statement of Mr. Nyberg that »Ministry of finance recently wanted to enter into separate cases in a way that we never saw before« should be evaluated from the perspective, that assets management strategy governs also BAMC. No need to say that BAMC should run its operations in full compliance with Slovenian law and regulations.
Ministry of finance will also in the future provide highest governance standards in Bank Assets Management Company and full independence of the decision making processes managing its assets portfolio.
All theses in line with objectives, targets and strategic orientation which Slovenian parliament and government has put in front of the institution.
What Mr. Nyberg wrote: »The future is unclear«. With clear objectives and strategic focus we should provide that BAMC will successfully fulfill its mission.
|Introductory speech from dr. Lars Nyberg at the meeting of the Committee on Financial and Monetary policy October 7th 2015||7.10.2015||Press Releases|
Mr chairman, members of the committee
I shall not comment further on the remuneration of Mr Månsson. I did that in a letter to the Minister that was published yesterday and there is nothing to add to that. It should be obvious to everyone that Mr Månsson has been in Slovenia for the challenge of building a company in which he believed and not for the money. He would more than double his salary if he worked somewhere else in Europe. Hiring a new competent management will be considerably more expensive.
However, let me state two things. Firstly, all payments, to Mr Månsson and to all others, are based on employment contracts that are in line with the remuneration policies valid at the time when the contracts were signed. And secondly, the Ministry of Finance has had full knowledge of all these contracts. The contract with Mr Månsson from July last year was actually set up in close cooperation with the Ministry, since we wanted to assure that it was in compliance with the existing remuneration policy. When payments are made according to the agreed contracts, this should be no surprise to the Ministry. The BAMC has hidden no information.
But, as I suppose you all realise, the issue of remuneration is not the reason for the government to fire Mr Månsson – or me, for that matter. Mr Mramor told me a month ago, long before the issue of remuneration was back in the press, that the pressure to get rid of Mr Månsson had increased substantially over the summer. Early last week he asked the non-EDs to come up with a plan for changing the management as quickly as possible. Then came the remuneration debacle that provided an excuse for terminating the contracts.
That excuse was unnecessary. No chairman or CEO can work without the confidence of the owner, in this case the Finance Minister. If he had told us that he wanted us to leave, we would immediately have resigned, without the government having to meet for five hours to make up more or less credible reasons for our dismissal. But, of course, the government would have seemed less powerful.
When, in 2013, the BAMC was set up, the idea was to establish a politically independent institution. At that time, it was realized by the government that many controversial decisions would have to be taken, decisions that would come in conflict with the interest of the traditional Slovenian networks. For this reason, a separate law, the ZUKSB, was written to establish the purpose of the company – to regain as much as possible of the money lost by the banks - and to provide a base for its independence. Three foreigners with long experience from similar companies were put in the board to guarantee that decisions would be commercial rather than political, even in difficult situations.
The setup provided credibility, both domestic and international. And from an international standpoint, the BAMC has been a great success. We have taken over the assets – mostly loans – from the banks as planned; we have restructured and saved a number of companies where previous owners failed and we have sold assets and by that paid back money to the taxpayers. This is exactly what an asset management company should do, and we are recognised internationally for having done it well and quicker than expected.
Domestically, we were for a long time accused of doing nothing. This was not unexpected, because during the period when assets are transferred from the banks, no asset management company can show interesting results.
Today, we are accused of doing too much, which of course is the reason for “the pressure” put on the finance minister to change management. We have seen a number of cases where it is quite obvious what has to be done in the interest of the taxpayers, but where this interest comes into conflict with the interest of the present owners and management. The law puts us clearly on the taxpayers’ side. Up to now, the independence of BAMC has made it possible for us to work according to established international principles. For example, we expect creditors to be paid before owners, even if this has not been the tradition in Slovenia.
But the future is unclear. With the latest development, starting with the dismissal of two foreigners from the board in March this year, the credibility of BAMC has been seriously hurt. Even though the present non-EDs of the company are honourable people, the increased political influence is clearly visible. During the last month, we have also seen the Ministry of Finance wanting to enter into separate cases in a way that we never saw before. From an international standpoint, the governance of BAMC has taken a huge step backwards.
Slovenia is a country, which I have really come to like and where I have learned to know many nice and very competent people, not least among the young staff of BAMC. Leaving Slovenia, I will not wish you good luck. I just hope that you know what you are doing.
|Letter of the Chairman of the Board to the Minister of Finance||6.10.2015||Press Releases|
Concerning the remuneration of Mr Månsson
Dear Mr Mramor
1. Mr Månsson was hired from 1 August 2014 and paid a competitive international salary, including a travel allowance. The remuneration was still substantially lower than Mr Månsson had in his previous employment. Mr Månsson was also required to exit from the ownership in his previous employer. The package was compliant with the valid remuneration policy and decided on by the Board on 22 July 2014. The state secretary of the Ministry of Finance, who at the time was a member of the board, participated in the decision.
Between 1 August 2014 and 28 February 2015 Mr Månsson had a fixed salary of gross €20.500 a month and variable salary, depending on performance as judged by the non-EDs of the BAMC and based on Balanced Score Cards reviewed by the Remuneration Committee and the Board every three months.
The contract between BAMC and Mr Månsson from 21 July 2014 stated that if a future remuneration policy would not allow for a variable remuneration, the variable part would be turned into an additional fixed salary amounting to 80 per cent of the base salary. This was in line with the existing remuneration policy, which set no upper limit to the fixed salary. When the new remuneration policy was announced, a transition of the variable part of the salary was executed as agreed in the contract.
For the period between 1 August and 28 February (7 months), the variable (additional fixed) salary amounted to gross €16.400 a month or in total gross €114.800, which was paid out in March 2015. Even if this payment may have been in conflict with the spirit of the new remuneration policy, BAMC had a legal obligation to pay on the basis of a valid agreement with Mr Månsson. This agreement was in line with the remuneration policy in force at the time when the agreement was concluded.
The Ministry of Finance has had full information of the contract with Mr Månsson and of the variable salary and its calculation. No information concerning the remuneration has been concealed by BAMC.
2. With the new remuneration policy from 5 March 2015, contracts were agreed with the non-EDs and annexes were added to the contracts of the EDs. In the annex, Mr Månsson's fixed salary was lowered to gross €17.000 and the variable salary was taken away. Compared to the period between August 2014 and end of February 2015, Mr Månsson's remuneration was lowered by 54 per cent.
The final new remuneration policy had not been discussed with the BAMC Board before it was issued. Immediately after its issue the Board in discussions with the Ministry of Finance pointed out some peculiarities, which may have been unintentional, the most serious being that Mr Månsson´s travel allowance had been taken away. Instead he had been given the option of using a company car. Since Mr Månsson has his family in Sweden and needs to go home over the weekends, a company car was of little use.
The Ministry of Finance (Mr Mramor and Mr Dragonja) recognised the problem, confirmed that the travel issue had been overlooked and promised to address it, either by amending the remuneration policy or in another way. With this background, waiting for the Ministry to act, the board decided in March to continue to pay the travel allowance agreed in Mr Månsson's contract. Mr Månsson decided to abstain from a company car. At the board meeting in April, the first meeting with the new board, it was reported that the travel payments continued and the board approved the report.
The travel allowance has since been taken up in a number of meetings with the Ministry, before and after the summer 2015 and latest with all the non-EDs of BAMC present at the Ministers office on September 30. The message was still that the Ministry would search for a solution.
Mr Månsson's travel allowance has been paid as agreed in the employment contract, waiting for the Ministry to act as indicated. The Ministry was fully aware of the contractual obligations. Apart from the travel expenses, all payments to Board Members have been in compliance with the new remuneration policy.
3. According to a EU agreement, social contributions can under certain conditions be paid either in the country of work or in the country of residence. Mr Månsson applied for the latter, which was eventually granted by the Swedish authorities. This was also clearly stated in the employment contract. The calculation of the social contributions paid to Mr Månsson for transfer to the Swedish tax authorities are as enclosed.
4. An explanation of payments made abroad during February and May is also enclosed.
cc (without enclosures): Mr Cerar, Prime Minister
Mr Pocivalsek, Minister of Economy
Mr Jazbec, Governor, Bank of Slovenia
Mr Szekely, European Commission
Mr Anderton, ECB
Ms Velculescu, IMF
|Sale of RS38 bonds||6.10.2015||News|
On 5 October 2015, BAMC performed the collecting of binding offers for the sale of 1,490,087 lots of RS38 bonds, owned by BAMC. BAMC decided to sell the RS38 bonds for the purpose of repayment of the first issue of DUT01 bond maturing on 15 December 2015 in the amount of 502.5 million EUR plus accrued interest from all bonds issued in the amount of 45.5 million EUR, totaling 548.0 million EUR.
BAMC received offers to purchase 3,875,087 lots of RS38 bonds, which corresponds to the oversubscription of 2.6 times the offered quantity. BAMC accepted offers from nine bidders and sold all 1,490,087 lots of RS38 bonds. The achieved average weighted yield to maturity of all accepted offers was 0.36%. The obligations between the contracting parties shall be settled on 7 October 2015.
|BAMC extends the deadline for the submission of binding offers||1.10.2015||News|
The Seller extends the deadline for the submission of binding offers in the process of selling the Claim and Equity Stake in AHA EMMI d.o.o., namely by 15th November 2015, received at or before 15:00. All future deadlines set out in the invitation to tender (i.e. an 8 day period for the selection of the winning bidder) are also reasonably extended. Potential bidders seeking further information may contact the designated person, indicated in the invitation to public tender.
|There have been no changes in BAMC executive directors’ salaries since April 2015||28.9.2015||Press Releases|
Since April 2015, when the Bank Assets Management Company implemented changes in its remuneration of its Executive Directors as a consequence of the amended BAMC remuneration policy, there have been no additional changes in this regard. The BAMC remuneration policy regulates the salaries of BAMC’s executive and non-executive directors. This policy does not apply to the earnings of other employees.
BAMC reports to the government about all remuneration subject to the aforementioned policy on a regular basis. This information is also publicized in the annual report. The Government of the Republic of Slovenia granted a discharge to the BAMC Board of Directors. The non-executive directors and the government also have full access to BAMC’s transactions and cash flow information. In addition, BAMC is working closely with the competent institutions, providing them with all relevant information.
With regard to the remuneration of the CEO Torbjörn Månsson, which has become the focus of media attention and which is considered public information, BAMC would like to clarify that his monthly salary was set at 14,126.54 euros as of the implementation of the amended remuneration policy. The increased disbursements recorded in the online application for public information at the expense of registered taxpayers in accordance with the Act on the Access to Information of Public Character (ZDIJZ) are associated with payroll adjustments according to employment contracts for 2014 and 2015 and to settlement of social contributions. As a Swedish national, the CEO is paying his social contributions in Sweden. Because of the differences between the Slovenian and Swedish systems and due to the nature of his social insurance, he is paying these contributions once per year. With regard to salary adjustments relevant to its other employees, BAMC does not disclose these figures regardless of whether they apply to Slovenian nationals or foreign nationals.
The bonuses and additional remuneration of BAMC employees are subject to regulation via internal by-laws, and all BAMC employees, regardless of their country of origin, have signed employment contracts with BAMC. Foreign citizens are paying their dues both in Slovenia and their countries of origin and are not tax residents of the Republic of Slovenia.
|BAMC obtains international anti-corruption certificate from ETHIC Intelligence||24.9.2015||Press Releases|
BAMC was awarded the Anti-corruption Compliance System Certificate by the internationally well-known and respected French agency ETHIC Intelligence. This is a first-level certificate, which the Agency awards only after a comprehensive program has been successfully implemented. The BAMC program was designed to effectively take into account the recommendations of the Court of Auditors and the Commission for Preventing Corruption. The certification process includes an independent on-site detailed reviews of the organization’s activities and a structured review of the evaluator’s report by an international expert committee which is part of the ETHIC Intelligence program.
BAMC is pleased to see that its successful efforts have been noted by the Court of Auditors in its recently released report and also by Ethics Intelligence. BAMCs will expediently continue to address remaining concerns and its taking a continuous improvement approach in this important area.
Through the involvement of an independent, international expert organization, BAMC sought to test the design and implementation of its compliance and corruption risk prevention program – which includes measures that were recommended by the Commission for Prevention of Corruption and the Court of Audit but also measures originating from international good practices - and see how it compares to the highest international standards for this field. BAMC decided to work with the organization ETHIC Intelligence, founded by Philippe Montigny, a former member of the Office of the Secretary-General of the OECD, because it is an internationally-renowned organization that has been reviewing, advising and issuing compliance and anti-corruption certificates since 2006.
ETHIC Intelligence is recognized for its in-depth on-site reviews, structured and transparent evaluation programs, a solid conflicts of interest prevention system, and the certification decisions are made by a committee of respected experts in corruption risk management. Organizations applying for the certificate are required to meet strict international standards, which includes a recommendation from one of the international institutions such as OECD, World Bank, ICC and TI.
“DUTB (BAMC) was particularly eager to use our certification process to identify areas for improvement in its anti-corruption compliance program and to strengthen and maintain the effectiveness of the program against evolving international best practices. The evaluations made by both the auditor and the ETHIC Intelligence committee of experts highlight BAMC’s efforts in this area and testify to their success. We are proud to include BAMC among the companies who have earned ETHIC Intelligence certification,” said the organization’s CEO Philippe Montigny following the conclusion of the certification process, whose most important element was the on-site review of BAMC’s operations.
The on-site review of BAMC’s operations was conducted in late March 2015 by the Swiss-based auditing firm SGS. As part of the review process, SGS’s senior consultant Van Klaveren conducted numerous interviews with heads of departments, the relevant project manager and the executive directors of the BAMC. SGS’s review was focused particularly on the effectiveness of BAMC’s operations and fulfillment of compliance requirements within the BAMC.
|Invitation to express interest in the acquisition of a majority stake in Litostroj Ravne||23.9.2015||News|
Litostroj Ravne, d.o.o. (»Litostroj Ravne«) is a manufacturer of high quality custom-made industrial hydraulic and mechanical presses for sheet metal forming with nominal force from 400 to 40,000 kN and with table length up to 8 meters and press weight over 1,000 tones. Litostroj Ravne is also an expert in providing rebuild, upgrade, productivity increase and other related services for all types of presses and press lines of own and third-party production and has a world established brand for more than 45 years.
DUTB, d.d (88.67%), Uroš Križanec (6.32%) in Comark, d.o.o. (3.70%) are considering the disposal of the majority of shares (98.7%) by way of a joint sale transaction.
KF FINANCE, družba za cenitve in finančno svetovanje, d.o.o. has been mandated to act as the sole financial advisor to the seller. For any additional information regarding the aforementioned transaction, please contact Mr. Bojan Kunovar, KF FINANCE, družba za cenitve in finančno svetovanje, d.o.o., Hacquetova ulica 1A, 1000 Ljubljana, Slovenija, telephone: 00386 30 362 565, e-mail: firstname.lastname@example.org or Mr. Uroš Srabotič, telephone: 00386 40 805 804, email: email@example.com.
|Call for offers to purchase receivables against the company AERO HOLDING storitve d.o.o.||22.9.2015||News|
The Bank Assets Management Company hereby publishes this call for binding offers in its own name and for its own account in reference to the partial purchase of claims held against the company AERO HOLDING storitve d.o.o.
|BAMC signs deal with Noži Ravne||18.9.2015||Press Releases|
In 2014, BAMC transferred claims against the company Sistemska tehnika d.o.o. from Abanka Vipa d.d. In April 2015 BAMC participated at an auction in the bankruptcy of Skupina Viator & Vektor d.d. - in bankruptcy, where it bought a 90% share in Sistemska tehnika d.o.o. and 100% share in Sistemska tehnika Armas d.o.o., with the goal of consolidating the transaction structure for the potential buyer and later selling the combined equity interests and claims. Today BAMC signed a contract to the bidder having offered the most beneficial terms of purchase in a competitive procedure. The contract involved the purchase of equity interests and credits of Sistemska tehnika d.o.o. and the share in Sistemska tehnika Armas d.o.o. The companies that had been for sale for a number of years as part of the bankruptcy of Skupina Viator & Vektor d.d. - in in bankruptcy will thus gain the opportunity for further development under a new strategic owner.
|BAMC will appeal the decision of the District Court in Ljubljana||17.9.2015||Press Releases|
BAMC disagrees with the contents of the decision on the commencement of compulsory settlement proceedings against Sava and will appeal against it. BAMC nevertheless welcomes the decision of the District Court in Ljubljana to commence the compulsory settlement proceedings against the debtor, however the ruling poses more questions than it provides the answers, which the court itself admits in the wording of the decision.
Thus, all proposing creditors have now been given the status of the initiator of the compulsory settlement, and may as such engage in all activities in compulsory settlement proceedings, including the proposal of financial restructuring plan.
The court entirely overlooked the element of personal connections between the companies Sava and Gorenjska banka, which has clearly been identified by the market regulator, the Bank of Slovenia, in its decision on the commencement of the proceedings to withdraw Sava d.d.’s qualified share in Gorenjska banka.
Also, surprisingly, the court disregarded the explicit instructions of the Higher Court of Ljubljana, stating that the mandate for leading the compulsory settlement should be bestowed upon the creditor who has the ability to carry out the compulsory settlement. Given that BAMC has approximately 123 million EUR of claims against Sava, no financial restructuring plan can be approved without BAMC’s support.
|BAMC extends the deadline for the submission of binding offers||11.9.2015||News|
The Seller extends the deadline for the submission of binding offers in the process of selling the Claim and Equity Stake in AHA EMMI d.o.o., namely by 2nd October 2015, received at or before 10:00. All future deadlines set out in the invitation to tender (i.e. an 8 day period for the selection of the winning bidder) are also reasonably extended. Potential bidders seeking further information may contact the designated person, indicated in the invitation to public tender.
|Industrial assets of Nafta Petrochem and equity stakes of Metanol, Rezervoarji and Industrijske storitve on sale||26.8.2015||News|
DUTB is informing interested public that within the process of bankruptcy of Nafta Petrochem the following industrial assets are available for sale: (1) industrial complex for production of formalin, synthetic materials and phenol resin and (2) equity stakes of Metanol d.o.o., Rezervoarji d.o.o. and Industrijske storitve d.o.o., which in nature represent methanol production facility. Details regarding the sale process have been published on AJPES business registers, as follows:
- Public auction Trimlini
- Public auction methanol
- Public auction Trimlini
For all further information please contact the bankruptcy trustee Mr. Silvo Zorec, who has been authorized to lead the sale procedure.
|BAMC extends the deadline for the submission of binding offers||25.8.2015||News|
BAMC extends the deadline for the submission of binding offers in the process of selling the Claim and Equity Stake in AHA EMMI d.o.o., namely by 15th September 2015, received at or before 16:00.
|BAMC is getting it done||21.8.2015||Press Releases|
Bank Assets Management Company is fully on track to fulfilling its mission and long-term objectives. Results so far are exceeding short term targets. Cash generation during 2013 to mid 2015 exceeds 311 Million, or almost 20% of the transferred portfolio (at transfer value).
In 2014 BAMC established a robust and well-functioning organization. Having concluded its first phase of operations that included finalizing the transfers of assets from 6 banks and building its operational capabilities, BAMC today operates as a company with 96 employees with an average -including the managements’- net salary of €2.000 (€3.500 gross) and is in full implementation of the second phase of its operations. The focus now is on the process of restructuring still operational businesses, adding value to, and optimizing the value of, the assets with the aim of finding good long-term owners and generating cash flow that will be used to repay and unburden the tax payers of some of the financial obligations caused by the losses in the banks in Slovenia.
BAMC manages exposures in 563 cases (companies or groups of companies). The vast majority of the cases were in bankruptcy at the time of the transfer of the claims to BAMC. BAMC is pursuing restructuring strategies in approximately 110 companies at present, and with substantial progress. Financial restructuring has been put in place in more than 70% of the companies (mid 2015).
Net profit for 2014 amounts to €36,4 million and the value of BAMC’s equity has increased by €17,2 million, from €157,9 million to €175,0 million. It can be noted that BAMC also contributed to the state owned banks by paying interest on issued bonds in the amount of 41.9M and paid to the state 14.1M for the guarantees for its issued bonds during 2014.
|Annual report 2014||4.8.2015||News|
In accordance with the Rules of Ljubljanska borza, d.d., Ljubljana, and applicable law, Družba za upravljanje terjatev bank, d.d. (“BAMC”), Davčna ulica 1, Ljubljana, hereby issues the following announcement:
In accordance with the provisions of the Market in Financial Instruments Act (ZTFI), Družba za upravljanje terjatev bank, d. d. has published the annual report for the financial year 2014.
At the meeting of 4 August 2015, the Board of Directors of the BAMC reviewed and checked the audited annual report for the year 2014, in accordance with Article 24 of the Articles of Association of Družba za upravljanje terjatev bank, d. d.
The company published a notice on the Ljubljana Stock Exchange website on 30 April 2015, announcing a delay in the publication of the audited annual report due to delays in the auditing of the financial statements after the transfer of non-performing assets from Banka Celje to BAMC, which took place at the end of 2014.
KPMG Slovenija, d.o.o., Železna cesta 8a, Ljubljana, performed the audit of the financial statements and issued an unqualified opinion.
The annual report has not yet been approved by the Government of the Republic of Slovenia as the general meeting of the BAMC.
Disclaimer: The English text for all announcements is for information purposes only.
Annual report 2014
|Statement regarding alleged investigation against BAMC employees||4.8.2015||Press Releases|
The Bank Assets Management Company was informed from the media that certain BAMC employees have allegedly become the subject of a preliminary criminal investigation by the National Investigation Bureau (NPU) and has no further information about the matter. However, BAMC is in constant contact with NPU representatives and stands at their disposal ready to provide any information about BAMC itself and its employees.
|Higher court acknowledges BAMC’s warnings regarding inappropriateness of Gorenjska banka acting as the initiator of compulsory settlement against Sava||31.7.2015||Press Releases|
On 30 July 2015, the BAMC received the ruling of the Higher Court in Ljubljana (document no. Cst 450/2015 in the matter St 2868/2015), granting BAMC’s appeal. Namely, BAMC lodged an appeal against the decision initiating compulsory settlement against Sava d.d., where BAMC was bestowed the status of initiator together with a group of proposers, coordinated by Gorenjska banka d.d. At the same time, the Higher Court separated the motion for compulsory settlement of Gorenjska banka and a group of initiators, and the motion for compulsory settlement lodged by the BAMC.
The Higher Court returned the matter to the court of first-instance for a new ruling, however providing the District Court of Ljubljana with clear guidelines – especially with regard to the key facts which must be examined before a final ruling is made. Thus, the court must:
- determine if the initiator Gorenjska banka and the debtor Sava d.d. are related parties. Namely, this fact was not known to the court when it was adopting its original decision on approving the compulsory settlement filed by initiator Gorenjska banka joined by a group of other initiators. Thus, the court could not take this fact into account when making the initial ruling. If the court of first-instance should establish the existence of such a relation , it is obligated to consider the justified warning of BAMC that bestowing initiator status on Gorenjska banka as a related party to the debtor Sava d.d. would constitute an abuse of process;
- check which of the two financial restructuring plans would have significantly higher chance of success, regardless of which of the proposing parties (i.e. Gorenjska banka with its group of initiators or BAMC) lodged the motion for compulsory settlement first. When making a new ruling the court of the first-instance should not be guided by legal formalism but rather by the substantive aim of the compulsory settlement – i.e. which of the two initiators has the ability i to carry out the financial restructuring of the debtor, whilst ensuring a maximum repayment of creditors and the debtor’s solvency.
Throughout the entire process, BAMC has been stating that for business and ethical reasons alone, it opposes any actions whereby the subsidiary Gorenjska banka, and through it the debtor Sava as its single largest shareholder with 44.07% equity stake whereby exercising control over Gorenjska banka, would be in charge of the creditors compulsory settlement against its parent company, Sava. This compulsory settlement would also entail the restructuring of the claims of Gorenjska banka against its parent company Sava, as well as the sale of Gorenjska banka shares as the shares of the subsidiary company of Sava. It would be unacceptable and improper that, Gorenjska banka (and through it the debtor Sava) would be put in charge of setting out the terms and coordinating the process of looking for its own new owner, especially since this is a commercial bank. In this context, it is particularly important that Sava’s controlling interest in Gorenjska banka will be put up for sale in the restructuring process. BAMC cannot support such conduct.
BAMC as the largest individual creditor is the only one having the capacity to lead the financial restructuring of the debtor Sava d.d. Any kind of financial restructuring of Sava d.d. is not possible without BAMC participation, and any attempts by other debtors to exclude BAMC from the this insolvency process would be harmful for all the debtors involved, as well as Slovenian taxpayers. BAMC’s goal in the compulsory settlement of Sava d.d. is to prepare a professional well advised restructuring plan, based on which the debtor’s assets which will be sold i in a transparent and professionally coordinated manner within a reasonable timeframe, whereby the proceeds from the sale are fairly distributed among the creditors based on the principle of equal treatment. Before the sale, the value of the assets will be improved accordingly with the aim to achieve maximum repayment. With this aim in mind, BAMC will ensure Sava d.d.’s short-term and long-term solvency. BAMC’s crucial goal is to ensure the Slovenian taxpayers get maximum repayment.
|Factual corrections of recent statements published by SAVA d.d.||24.7.2015||Press Releases|
BAMC has no intention of engaging in a public exchange of opinions with Sava d.d. regarding its actions. BAMC was established by the State to maximize the recovery of the funds the taxpayers paid to decrease the bank hole created by the debtors, including Sava. Just as in other cases, BAMC will execute on the job it was created to do in the case of SAVA d.d., as well.
As a public limited company, Sava d.d. is required to present the public with timely and objective reports about its financials. SAVA d.d. is also obliged to present and give timely and correct information to BAMC in ongoing proceedings. The management team of Sava d.d. is responsible for ensuring that the information it is publishing is correct and not misleading. Much like in all the cases under its management, BAMC’s treatment of the Sava d.d. case is based on the reports and information provided by Sava d.d. itself.
One fact is that since the claims were transferred from the banks, Sava has not paid anything to the BAMC, and thereby to the state and its taxpayers, not even a single cent of the principal due on its loans. Another fact is that Sava d.d.’s management proposed to the creditors, BAMC included, to write off a further 47 million EUR in claims, while allowing Sava’s old, current owners to keep equity stakes. The BAMC’s task is not to look for solutions for Sava’s owners, but instead to ensure that proper care is ensured for the assets owned by Sava d.d., and to recover the value.
A third fact is that over the past 5 years, Sava’s losses have been accumulating as Sava d.d. reported a loss each financial period. This is on record in the annual reports published by Sava d.d.. Furthermore, in Sava’s last annual report Sava d.d. explicitly states that Sava’s liabilities exceed its assets, meaning the company has a negative equity of 23.5 million EUR.
|Alpina, d.o.o. takes on new challenges||21.7.2015||Press Releases|
Pursuant to the confirmed compulsory settlement, DUTB, d.d. became 100% owner of Alpina, d.o.o.. In the process, the company was deleveraged and has optimized its capital and ownership structure. The next steps will involve intensive operational restructuring measures over the next 6 months, with the first results expected as early as 2016. The aim of these measures is to improve the company’s operational efficiency and build on future growth potential. The company will rationalize its production facilities, sales network, its operating and investment capital and overhead costs, while at the same time optimizing its portfolio of products and markets. The implementation of the operational restructuring program will be coordinated by the company’s new CEO Barbara Vtič Vraničar, replacing the former director Matjaž Delopst. Especially in the sporting segment, Alpina has a strong brand presence and the reorganization will provide a platform for future growth, both on the company level and on the Alpina group level.”
|Virtual guide to the Celovški dvori residential complex||15.7.2015||Press Releases|
BAMC is pre-testing business interest in setting up business establishments in the residential complex
Ljubljana, 15 July 2015 – Earlier today, BAMC launched the website www.celovskidvori.eu. This is a virtual guide to the residential and commercial units which will be sold in the Celovški dvori complex after the transfer from the bankruptcy estate is finalized. Although the real estate in Celovški dvori are not yet under its ownership, BAMC’s publication of the website is to test in advance the interest of businesses to establish operations in the commercial premises located in the residential complex, and provide the public with a complete information resource about the neighborhood.
Ever since the transfer of claims from the banks in early 2014, the BAMC has been making efforts to take over the residential and commercial units in Celovški dvori. 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. The bankruptcy trustee initiated the transfer process in the beginning of 2015. In the process, one of the creditors also exercised legal recourse in the matter. Due to the unpredictable nature of the procedures, it is difficult to foresee when the BAMC will actually come into the ownership of assets in Celovški dvori. BAMC is making efforts to work constructively with the bankruptcy trustee and succeed in the court granting it the status of a legitimate owner as soon as possible.
Despite the fact that it is not yet the owner, BAMC is actively preparing for the takeover of real estate and conducting activities on various levels. After consulting the key stakeholders, BAMC also prepared preferential categories of business activities which will improve the quality of living in the neighborhood of existing and future homeowners. With the launch of the new website, BAMC is also providing the public a comprehensive informational resource about the neighborhood. The website is not an advance sale tool, it simply allows interested companies to submit tentative inquiries and indicative offers for the next 60 days.
|Invitation to express interest in the acquisition of a majority shareholding in Adria Airways, d.d., Slovenia||1.7.2015||News|
Adria Airways, d.d. (“Adria”) is the Slovenian national air carrier, carrying over 1.1 million passengers in 2014. It serves 30 scheduled routes and various charter destinations throughout Europe. Adria is the market leader in Slovenia and has a sizable market presence in Southeast and Central Europe through secondary hubs. The airline is an established member of IATA and Star Alliance. Adria represents a unique opportunity to acquire a European national air carrier with global reach and a well-known brand.
Republic of Slovenia represented by SDH d.d. (69.87%), together with DUTB d.d. (19.63%), and SDH d.d. (2.08%) (“the Sellers”) are considering the disposal of the majority of shares (91.58%) by way of a joint sale transaction.
KPMG has been appointed to act as their sole financial advisor to the Sellers. For any additional information regarding the aforementioned transaction, please contact Mr Boštjan Malus, KPMG poslovno svetovanje, d.o.o, Železna cesta 8a, 1000 Ljubljana, Slovenia, Phone: +386 (0)1 236 4300, E-mail: firstname.lastname@example.org or Mr Steffen Reeser, KPMG AG, Am Flughafen – The Squaire, 60549 Frankfurt am Main, Phone: +49 69 9587 2002, E-mail: email@example.com.
|Court grants BAMC the status of compulsory settlement initiator||23.6.2015||Press Releases|
Earlier today, the Ljubljana District Court, responsible for the compulsory composition proceedings against the debtor Sava, d.d., issued a decision to merge two procedures with creditor motions to initiate compulsory composition proceedings against the debtor, which had been lodged by the BAMC and a group of creditors with Gorenjska banka spearheading the motion.
The court thus granted BAMC the status of the initiator of compulsory settlement, which means that BAMC is able to exercise and enforce all rights of a creditor initiating compulsory settlement proceedings under the ZFPPIPP.
With this court ruling, the BAMC as the largest creditor is taking on an active role in the process of compulsory settlement against Sava, d.d.
Head of Corporate Communication
phone: +386 8 205 33 17, +386 1 429 38 36