Valamar and Pension Fund to Invest in Stari Grad: 500 Jobs after Renovation of Arkada and Lavanda

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The bankruptcy plan will enable Helios Faros to leave the bankruptcy procedure it is in since 2016 and continue operations

The assembly of bankruptcy creditors of the Helios Faros company has reached a decision to create a bankruptcy plan, following an offer of investment and recapitalisation by Valamar Riviera and PBZ Croatia Osiguranje pension fund. In the next step the bankruptcy manager of Helios Faros will compile a detailed plan to be adopted by the assembly. The plan should enable Helios Faros to exit the bankruptcy and continue operations of the company which was for decades the bearer of the tourism offer of Stari Grad, as Poslovni Dnevnik reported on July 20, 2017.

As was previously announced, PBZ Croatia Osiguranje and Valamar Riviera offered a restructuring plan and a six-year investment plan in tourism real estate, in the total amount of 650 million kunas. With the total renovation and construction of two resorts of high category, with a capacity of around 700 accommodation units, the Helios Faros portfolio would be repositioned in the premium offer, which would make a destination like Stari Grad more attractive and recognisable. According to this plan, Helios Faros would after the renovations of hotels Arkada and Lavanda employ around 500 workers.

Helios Faros currently has 2 and 3 star accommodation, with 1.465 beds in hotels Arkada and Lavanda, 2 star apartments and Jurjevac camp, although nearly 20% of capacity in solid objects has been out of commercial function for some time.

PBS Croatia Osiguranje pension fund and Valamar Riviera company are confirming with this project the synergy of a large institutional investor and strategic tourism investor with operational knowledge, expertise and results. PBZ Croatia Osiguranje and Valamar Riviera intend to develop the future operations of Helios Faros in close cooperation with Stari Grad as a destination and with the goal of further prosperity of the entire Hvar Island, their release stated.

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