Valamar Riviera d.d.

Legal Proceedings Report • Jul 20, 2017

HANFA- Croatian Financial Services Supervisory Agency 24b Miramarska Street 10000 ZAGREB

HANFA – Official Registry of Regulated Information

Zagreb Stock Exchange 2a Ivana Lučića 10000 ZAGREB

HINA – Croatian News Agency ots@hina.hr

Poreč, 20/7/2017 File no: 17-61/17

Subject: Announcement of the decision of the bankruptcy creditors of the company HELIOS FAROS d.d. u stečaju

Valamar Riviera d.d with registered office in Poreč, 1 Stancija Kaligari, registered at the Commercial Court in Pazin with the following number (MBS) 040020883, personal identification number (OIB) 36201212847 (hereinafter: the Company or Valamar Riviera) hereby announces that on 20 July 2017 the Assembly of bankruptcy creditors of the company HELIOS FAROS dioničko društvo za ugostiteljstvo u stečaju, with registered office in Stari Grad, Priko bb (island of Hvar) decided to prepare a Bankruptcy plan following the investment and recapitalization offer for HELIOS FAROS d.d. u stečaju.

The offer was jointly submitted on 15 May 2017 by Valamar Riviera and PBZ Croatia osiguranje dioničko društvo za upravljanje obveznim mirovinskim fondovima, with registered office in Zagreb, 44 Radnička cesta (hereinafter: PBZ CO).

As previously announced, PBZ CO and Valamar Riviera proposed in their offer a restructuring plan as well as a sixyear investment plan worth HRK 650 million for investments in hospitality assets. The total renovation and construction of two premium resorts containing around 700 accommodation units would reposition the Helios Faros d.d. portfolio as premium accommodation, thus turning Stari Grad into an attractive and well-known destination. According to this plan, Helios Faros would employ 500 people after the renovation of the two hotels, Arkada and Lavanda.

The Bankruptcy plan for Helios Faros d.d. would enable the company to emerge from bankruptcy and continue its business operations

Valamar Riviera d.d.