July 20 (SeeNews) - Croatian hotel operator Valamar Riviera [ZSE:RIVP-R-A] said on Thursday Hvar-based hotel company Helios Faros has accepted its recapitalisation bid made in partnership with PBZ Croatia Pension Insurance Fund.
Helios Faros will now draft a plan, which should lead the company out of bankruptcy and provide for the continuation of business, Valamar said in a statement.
You can subscribe to our M&A newsletter here
Valamar and PBZ have earlier proposed to invest 650 million kuna ($100.8 million/87.7 million euro) in Helios Faros over the next six years.
The companies plan to renovate two Helios Faros hotels - Arkada and Lavanda - of around 700 accommodation units, thus repositioning Helios Faros on the map of premium accommodation sites. Following the completion of reconstruction works, Helios Faros would employ 500 people.
Helios Faros, located in Stari Grad on Hvar Island, went bankrupt in 2016.
The Valamar group runs hotels, apartment villages and campsites in Istria and in Dubrovnik and on the Adriatic islands of Krk and Pag.
(1 euro=7.41279 kuna)