Following the sale of hotel „Plaža“, the Municipality will collect €800,000, while the Water Utility will receive €600,000
Following the recent sale of Hotel „Plaža“, the local government is expected to collect around €1.4 million. The amount relates to debts owed by Vektra Boka in taxes to the Municipality of Herceg Novi, as well as outstanding obligations to the Water Supply and Sewerage Company.
According to Herceg Novi Mayor Stevan Katić, the new owner of Hotel „Plaža“ has until mid-October to pay €20.4 million, after which all creditors should be settled. As he explained, the local government has several outstanding claims on that basis.
- I think that, all together, once everything is added up, the amount that has fallen due is around €800,000 when it comes to the local government, and approximately €600,000 in the case of the Water Supply and Sewerage Company. That is what concerns the Municipality and the local water utility, but there are certainly also debts owed to other creditors. In any case, we expect the payment to be made in accordance with the law and for those debts, which have grown over all these years due to accumulated interest, to now be settled - he said.
Katić recalled that, over the years, the Municipality of Herceg Novi had on several occasions managed to partially collect Vektra Boka’s tax debts through various enforcement proceedings and the seizure of real estate.
- Following the sale of Hotel Igalo, we settled a certain portion of the taxes, that is, the obligations Vektra Boka had towards the Municipality of Herceg Novi. And once again, some three or four years ago, through enforcement proceedings, we also seized land, that is their real estate, to cover some tax debts - partly in the area where the bus station is now being built, and part of the land where we recently opened up this new road towards the Drenovik neighbourhood - he explained.
However, this collection did not fully settle Vektra Boka’s debt to the Municipality of Herceg Novi. As previously stated, these are debts that have increased over the years due to accrued interest, meaning that the local government is still expecting to collect the remaining portion of its claims. The sale of Hotel „Plaža“ therefore represents another step in the process of settling Vektra Boka’s obligations to its creditors, while the final amount to be collected will depend on the fulfilment of the obligations stipulated following the hotel sale.