The sale of the Igalo and Plaža hotels in Herceg Novi has enabled former employees of Montenegro’s Vektra Boka to collect court-awarded employment claims, including unpaid wages and pension contributions. Separate disputes over property transactions and severance entitlements remain unresolved.
Former union representative said the outstanding payments also allowed approximately 50 former employees to retire after their pension contributions were settled.
Lawyer who represented workers in the proceedings, said employees who had worked for the company before bankruptcy recovered approximately €80,000, while a smaller group employed after the bankruptcy received around €320,000. The calculation of additional interest arising from delayed payments under the reorganisation plan remains outstanding.
The recovery of employee claims followed the sale of the two hotel properties, which formed a central part of Vektra Boka’s financial restructuring.
Another organisation representing former workers has challenged the property transactions and raised claims relating to severance payments. Disputed its interpretation of the privatisation agreement, arguing that provisions concerning possible compensation for violations of employment protections did not automatically establish individual severance entitlements.
The legal disagreements have therefore continued despite the collection of claims confirmed by court judgments. The Plaža hotel was acquired by Vile Oliva, associated with businessman, and renovation activities have been reported at the property.
Former employees have expressed support for the redevelopment, citing the prospect of new tourism investment and employment. Publicly discussed plans envisage 150 to 180 jobs, although these remain projected figures rather than confirmed recruitment commitments.
The transactions form part of the restructuring of tourism assets previously controlled by Vektra Boka, whose financial and ownership disputes have affected Herceg Novi’s hospitality sector for years. The settlement of court-awarded claims has resolved a significant part of the former employees’ demands, but outstanding interest calculations, challenges to the property transactions and competing severance claims remain subject to further legal proceedings.
