The proposal for what is called preventive restructuring was launched by the Ljubljana District Court at the initiative of the management after being endorsed by creditors holding more than the minimum 30% of claims.

Sava owes just shy of EUR 243m to financial creditors, the biggest of them being the Bank Asset Management Company (35.5% of the claims) and the bank Gorenjska banka (10.9%), according to the court's decision, posted on the website of the AJPES public company registry portal.

The company said the reason it filed for bankruptcy protection with the support of creditors was to ensure equal treatment to all creditors, protect their interests and assets.

The procedure is aimed at enabling further steps for the repayment of financial debt, synergies in the tourism division and optimising operation of the overhauled Sava group in a bid to avoid the risk of a fire-sale.

Sava used to generate the bulk of its revenue from rubber, but it sold its rubber division two years ago to pay down debt. It has also divested real estate and some other investments.

Its principal line of business is now tourism, which too has been streamlined.

The company reported net loss of EUR 4.4m for the first three quarters of the year on EUR 48.2m in sales revenue, down 5% over the same period last year.

The biggest single shareholder of Sava is the state through the Pension Management Fund (18.71%), Slovenia Sovereign Holding (11.06%) as well as through Probanka (3.97%), a bank in liquidation.

A major creditor, Gorenjska banka holds 2.81% in Sava, which in turn is the biggest shareholder of Gorenjska banka.