The Shareholders’ Assembly of the “Dr. Simo Milošević” Institute in Igalo held a special session, where they adopted the Restructuring Plan and the Decision on the appointment of the new Board of Directors, according to the RTHN portal.
The newly appointed Board of Directors includes: Predrag Dragojlović from the Development Bank of Montenegro, Petar Rakčević and Šefik Nišić from the Vile Oliva company, Pavle Obradović representing the Government of Montenegro, and Goran Čabarkapa from the Health Fund.
As stated by Majda Adžović, the representative of the state capital and Secretary of State in the Ministry of Spatial Planning, Urbanism, and State Property, the Restructuring Plan was supplemented with suggestions and comments from both the majority and minority shareholders with significant stakes.
“The amendments communicated have been incorporated into the Restructuring Plan, which now represents an optimum that will not only allow the Institute to operate but, with the investment provisions outlined in the Plan, which are secured by the Government of Montenegro’s budget for 2025, will restore the Institute to the map of exclusive healthcare centers,” she said.
Žarko Rakčević, a representative of the minority shareholders with significant stakes and the owner of Vile Oliva, explained that outstanding obligations amounting to 21.5 million euros will be addressed through capital increases, proportionally and according to the law, for all shareholders.
“Vile Oliva will cover up to 7 million of these 21.5 million euros in losses. The government will cover the remaining 14.5 million, and that’s the key message. Besides covering the losses, the next important aspect is the collateral provided in the Restructuring Plan and our agreements. It’s not just about covering the losses and continuing as before; it’s about investing, ensuring proper cooperation, and guaranteeing the Institute’s survival,” Rakčević emphasized.
Vile Oliva believes that the Institute can be both socially responsible and profitable, with the second phase being upgraded to a four-star category, which will improve services.
Rakčević also reminded that an agreement was reached with the government to prevent the sale of the first phase building, while the Children’s Department building could only be sold for the purpose of constructing a school in Igalo.
Executive Director Zoran Kovačević clarified that the Restructuring Plan includes addressing overdue obligations totaling almost 22 million euros.
“After Jugobanka, this was a major pressure on the Institute, hindering its regular operations and making it difficult to plan for the upcoming tourist season. In this sense, I believe that the overdue obligations will be addressed through joint participation by both the majority shareholder, the Government of Montenegro, and the minority shareholders with significant stakes in the Institute,” he said.
Kovačević expects that a decision will soon be made regarding the sale of the Children’s Department for the school project in Igalo, which would help resolve the Institute’s financial obligations and address the local school shortage.
Pavle Obradović, a member of the Board of Directors, highlighted that this is the first major investment by the Government of Montenegro in Herceg Novi in recent history.
“The plan, drafted by the University of Montenegro, envisages an investment of around 88 million euros for the new phase of the Institute, with a projected profit of five to six million euros annually after implementation. Additionally, the school to be built will be very important for Igalo and Herceg Novi,” he said.
The session was attended by shareholders holding 328,296 of the total 382,351 shares, representing 85.86% of the capital. The agenda included the following items: 1. Discharge of the Board of Directors members, 2. Appointment of Board of Directors members, and 3. Adoption of the Restructuring Plan.
