The worst business results in the group were posted by the subsidiary in Croatian coastal resort Umag.

"The business results are worse than those from 2011 and the beginning of this year does not indicate much improvement," chief supervisor Marino Furlan said.

According to him, the company finished last year in the red mostly due to write-offs and impairments at subsidiaries.

Furlan believes that the EUR 37m loss would be difficult to overcome this year. "Our primary market is still in the grip of the economic crisis, which is reflected in the lower turnout of Italian guests."

He said the company was striving to cut operational costs and was introducing new marketing approaches.

But despite all this, Hit generated a EUR 1.6m loss in the first five months of 2013 and some positive trends started showing only in May.

In the January-May period, revenues were down by 12%, which is a bit less than in the same period in 2012.

The management is discussing a reprogramming of the company's loans with creditor banks and Furlan believes the talks will be successful.

This was the first time in several months that all six Hit supervisors met. They also discussed the appointment of a new CEO.

Currently, the company is led by Dimitrij Piciga, who was appointed in mid-March for a transitional six-month term during which he has to pave the way for a new management.

A call for applications for a new CEO was published on 23 March and Piciga was among the ten candidates who applied for the post.

Furlan said the new leadership would be selected next Friday to "give the company a new boost".