The government has given consent to convert the debt of Tivat’s Luštica Development of four million euros to the state into share capital in that company.
In this way, the state of Montenegro will have four million shares in the company Lustica Development, the nominal value of which is one euro each.
As announced after the Government session, the claims against the Tivat company refer to four additional annual installments due for 2019, 2020, 2021 and last year.
The lease and construction contract concluded by Luštica Development, the Government of Montenegro and the Municipality of Tivat on October 23rd, 2009 stipulates that, among other things, for the first ten years of the lease period, the company will pay the Government an additional annual rent in the amount of million euros.
The contract stipulates that the specified additional annual rent will not represent a cash payment, but will be paid in kind, in the form of issuing ordinary shares in the company to the state.
The Government said that additional annual rents in the total amount of five million euros have already been paid, on the basis of which the state acquired ownership of additional million ordinary shares in the Company.
As they said, the total share capital of the company on the day of the adoption of the Decision of the Shareholders’ Assembly of the company amounts to 69.559.781 euros and is divided into the same number of ordinary shares, each with a nominal value of one euro.
“On the basis of the issue of shares to be carried out, the payment of the annual additional rent to the Government is ensured for the previous four years, while for this year, after the adoption of the appropriate Decision of the Shareholders’ Assembly, the payment of the last amount will be made on the basis of the additional annual rent”, it is stated in the announcement.
