Montenegro mulling options to keep afloat indebted spa centre

The solution on which there is the greatest degree of agreement and which does not conflict with the rules and principles of granting state aid is the Rescue and Restructuring Plan, the government said in a statement on Tuesday.

This plan involves three steps: granting an aid package of 300,000 euro ($325,900) to ensure the continuation of the centre’s operations, to be followed by an aid package of up to 10 million euro for a period of six months to unblock the company's accounts and ensure continuation of operations and payment of salaries. In those six months, a new restructuring plan will be made, thus creating conditions for investments in the company's recovery.

Last week, local media reported that Institut Simo Milosevic faced a strike by its staff over unpaid wages.

The spa centre has an outstanding debt of more than 22 million euro, which has prompted the government to establish a special commission last month, in order to address the company's persistent liquidity issues. Institut Simo Milosevic swung to a net loss of 157,328 euro in the first nine months of 2023, from a net profit of 2,995 euro in the prior-year period, according to the latest publicly available data.

$ = 0.9202 euro