Helios Faros is the major tourism player in Stari Grad on the island of Hvar, but has been undergoing bankruptcy proceedings since February 2016.
The PBZ Croatia Osiguranje pension management fund and Valamar Riviera submitted a joint bid for investment and recapitalisation of the Helios Faros from Stari Grad on the island of Hvar yesterday, reports Poslovni.hr on May 16, 2017.
Helios Faros has been the main player in the tourism industry in Stari Grad for decades, but has been undergoing bankruptcy proceedings since February 2016. The company owns 2* and 3* category hotels and accommodation facilities with 1,465 beds. However, about 20 percent of their capacities have been unused in recent years.
The offer includes a restructuring plan and a five-year plan for investment in tourism assets in the amount of 650 million kuna. Through a complete renovation and construction of two luxury resorts with 700 units is involved, the Helios Faros portfolio would be repositioned towards the premium segment, which would increase the attractiveness and distinctiveness of the whole destination. Under this plan, Helios Faros would employ about 500 workers.
In the future project led by PBZ Croatia Osiguranje and Valamar Riviera, Valamar Riviera would manage the development and operations of Helios Faros.
PBZ Croatia Osiguranje and Valamar Riviera see this project as a confirmation of synergies of a joint bid by a large institutional investors and a strategic investor in the tourism sector, which brings along with it, operational knowledge, expertise and results. PBZ Croatia Osiguranje and Valamar Riviera intend to develop the future business operations of Helios Faros in close cooperation with the Stari Grad destination, in order to further the development of the whole island.
If creditors accept the offer, the process of drafting a detailed bankruptcy plan will be launched, which should allow the exit of Helios Faros from bankruptcy proceedings.
Stari Grad is a town on the northern side of the island of Hvar. It is one of the oldest towns in Europe, and its position at the end of a long, protected bay, next to prime agricultural land has long made it attractive for human settlement. The most ancient part of Stari Grad falls within the UNESCO Protected World Heritage Site of the Stari Grad Plain.
