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BOBAR OSIGURANJE JSC BIJELJINA

BOBAR OSIGURANJE JSC BIJELJINA (insurance company) is an example of successful crisis management. Bobar osiguranje JSC Bijeljina with over 130 employees and as an extremely profitable and promising insurance company with a significant market share, so to speak “during the night”, the owners and related parties found itself in the zone of pre-bankruptcy proceedings.

The owners declared bankruptcy, which led to the collection of all creditors` claims and the withdrawal of liquid assets from the guarantee account. At the same time, the insurance company found itself in an unenviable situation with:

• endangered liquidity,
• insufficient mathematical reserve,
• lack of minimum capital adequacy,
• minimum share capital below the legally prescribed level,
• outflow of staff and rapid decline in revenue and market share,
• the enforcement proceedings were initiated against the actions of the Insurance company owner.

The professional team of Monet broker, putting all its capacities at the disposal of the insurance company’s Board of Directors, completely rehabilitated the situation in the company within a year by conducting:

• take-over communication and direct cooperation with the regulator - the RS Insurance Agency
• a due diligence analysis formation that adequately recorded all disputed contracts and business changes that have caused or could have caused negative consequences for the company,
• a consultancy on the payment of due liabilities on behalf of claims to the insured,
• investment consulting in the process of managing assets, securities and real estate,
• the recapitalization procedure and through finding a strategic partner,
• license obtaining process for acquiring a qualifying participation in the insurance capital,
• take-over the debts of the company on the basis of guarantee and collection of disputed receivables by the new owners, and
• a strategic partner’s introducing process into the management structure, changing the name and setting up a new business organization.

The undertaken activities enabled the legal successor of Bobar osiguranje JSC Bijeljina to operate today in the market of Bosnia and Herzegovina with enviable business results and market share, providing new and innovative products.

PAVLOVIĆ INTERNATIONAL BANK JSC BIJELJINA

Pavlović International Bank a.d. Bijeljina, as our long-term client, has used our stockbroking and investment consulting services, tailored to its needs. On several occasions, the Bank`s management has placed its trust in us and contracted us as a share issue agent.

At one point, due to the activities of the majority owner, the bank found itself in a situation where:

• the majority owner`s license for holding a qualifying share in the Bank`s capital was revoked, which resulted in the revocation of voting rights, and the Bank was managed by the RS Banking Agency,
• endangered capital adequacy of the Bank,
• due to the stated, loss share capital reduced below the legally allowed minimum,
• there was uncertainty in the collection of loans related to the majority owner of the Bank.

These circumstances jeopardized the Bank`s market position and made it difficult to find sources of financing.

The Monet broker’s team of experts performed the necessary equity increase by issuing shares in a short time of only a few months in order to provide the necessary capital for the smooth operation of the Bank. We found an investor who participated in the public issue of shares, in a way that we had previously obtained a license to acquire a qualifying holding with over 50% ownership from the RS Banking Agency.

After the registration of ownership by the new owner, the organizational structure of the Bank was changed, as well as the name and the headquarters of the Bank.

The Monet Broker team performed a complex job related to the procedure of collection of overdue loans from the then majority owners and related persons in the procedure of execution over the Bank`s shares and other assets that represented collateral.

The bank has stabilized its operations and today occupies a significant place in the domestic banking market.

„TRŽNICA“ LLC Banja Luka

The project of comprehensive analysis (due-diligence) of the company "Tržnica" JSC Banja Luka was extremely complex according to all parameters. Important factors that influenced the course of the project are: extremely fragmented ownership with over 4,500 shareholders, two stakeholder that existed at the time of the takeover of the Company, the activities of small shareholders` associations and the active participation of two parallel managements.

All procedures of introduction into ownership and take-over of the Company from a completely new shareholder were preceded by legal procedures of proving the status of an individual management, as well as the legality of decisions made at the sessions of the General Meeting of Shareholders.

Our expert team, together with the legal advisors of the buyer of the majority stake of the Company, conducted a complete analysis of the current situation and gave proposals for action in certain segments of acquiring majority ownership of the shares of this Company. We then performed the procedures:

• negotiations in the process of securing a credit line with commercial banks for the purchase of the shares in question,
• acquisition of a majority ownership package of over 75% of ownership by purchase on the organized stock market,
• scheduling and holding the General Meeting of Shareholders at which the new management of the Company was appointed,
• take-over a joint stock company and acquiring the status of a controlling shareholder,
• the procedure of minority shareholders squeeze-out,
• the change in the legal form of the Company.

Today, the company "Tržnica" operates in the legal form of a limited liability company within the group "MG mind", achieving notable business results and employing over 130 employees.

MORTGAGE BONDS

Chamber of commerce and industry of Banja Luka

Chamber of Commerce and industry of Banja Luka region has recognized the advantages of borrowing based on the issue of real-estate backed long-term bonds on the domestic market, on which basis we have registered Chamber of Commerce and industry with the status of a legal entity in the register of issuers with the RS Securities Commission. After that, we started drafting the prospectus and successfully issued long-term bonds for a period of 10 years, with an interest rate of 3.5% per annum. The bonds are secured by registering a mortgage on a building owned by this legal entity.

Government-owned company "ŠUME SRPSKE" JSC Sokolac

Our team assisted the Government-owned company "ŠUME SRPSKE" JSC Sokolac to raise the funds, by issuing corporate bonds, for the purchase of necessary equipment - machines for removing karst. The bonds were issued for a period of 3 years with an interest rate of 4.50% per annum. As collateral for bonds, in addition to bills of exchange, a mortgage was registered on the administrative buildings in Sokolac, Banja Luka, Han Pijesak and Pale, with a total estimated value of 5,029,530.00 BAM.