REPUBLIC of CROATIA Number: 14. St-739/11

REPUBLIC OF CROATIA Number: 14. St-739/11

COMMERCIAL COURT IN SPLIT

Sukoišanska 6

21000 SPLIT

April 19, 2013

ANNOUNCEMENT ON PROPERTY SALES

The Commercial Court in Split, by the Bankruptcy Judge Jozo Ćaleta as the sole judge, with the participation of Vesna Katić as a court reporter, and the creditors of the Bankruptcy Debtor in bankruptcy proceedings against the company: ADRIACHEM d.d. in bankruptcy, Kaštel Sućurac, Cesta Dr. F. Tuđmana 344, as a Bankruptcy Debtor (hereinafter referred to as the ˝Debtor˝ or the ˝bankruptcy Debtor˝) represented by Bankruptcy Estate Manager Ivo Jukić, from Podstrana, Poljičkih knezova 21, ruling on the sale of the Debtor's property, on 18 April 2013, at the hearing on the sale of property:

Decided

Hereby it is decreed the seventh (VII) sale of property owned by the aforesaid Debtor, as follows:

I) Real Property bearing a mark of the Land Registry of the Municipal Court in Split – Ordinary Service in Kaštel Lukšić, located in the Cadastral Municipality Kaštel Sućurac, marked as:

cadastral plot 1315/1, surface of 40,942 m2, title deed No.3994, land registry card No. 1315/1, ownership of the bankruptcy Debtor;

cadastral plot 1353/2, the Cadastral Municipality Kaštel Lukšić, surface of 701 m2, title deed No. 1126, land registry card No. 1353/2, ownership of the bankruptcy Debtor;

buildings - industrial and business facilities and the land on which the buildings were built (the land under the buildings), in the Land Registry marked as the following cadastral plots: 7715 (gatehouse), 7716 (warehouse), 7717 (warehouse), 7718 (mill waste), 7719 (building-dining room with a wardrobe), 7720 (production plant), 7721 (the new printing), 7722 (Adriaterm and Adriaflex), 7725 (power unit), 7726 (transformer station TS-2), 7727 (compressor station), 7728 (refrigerating plant), 7729 (warehouse and compressor unit), 7730 (transformer station TS-7), 7731 (transformer station TS-B-4-5-6), 7732 (power unit), 7733 (transformer station TS-B-3), 7734 (transformer station); net building surface is 24,867.25 m2 and a total surface of the land under the buildings is 26,435 m2, registered in the title deed No. 1126, the mark of the respective land registry card is identical with the number of the quoted cadastral plot; all owned by the bankruptcy Debtor.

II) Production Engineering, Machinery, Equipment, as follows: material preparation, F-soft foil production planning, L-hard foil production planning, ADRIATERM foil production, ADRIAFLEX foil production, PVC and PU leather production, printing plant, planning of granulate production, production of granulate, PVC tube production, section production, PEHD tube production, laboratory, mechanical engineering, electrical engineering, warehousing and transport.

All mentioned under I) and II) is being sold as an economic entity with all the equipment placed in the same, i.e. as a business complex of the factory ADRIACHEM d.d. in bankruptcy, Kaštel Sućurac, at the starting sales price of HRK 45,000,000.00

ENCUMBRANCES ON REAL PROPERTY:

III) Real Property specified in section I/1-3, are encumbered by mortgage-preferential rights, therefore the mortgagees-preferential creditors having the right to be settled separately will be paid off from the sales price realized by this sale.

Starting sales price is determined by the study on the estimated value of property elaborated by a certified court expert.

IV) It is decreed to enter the sale of the property specified in section A/Ihereunder,in the Land Register of the Municipal Court in Split - Ordinary Service in Kaštel Lukšić. The Court will carry out the same on receipt of this Decision, indicating that mentioned real property is sold in the bankruptcy proceedings against nominated bankruptcy Debtor.

Method and Terms of Sale

1) The sale is performed in the bankruptcy proceedings against aforesaid Debtor, pursuant to the rules of the Bankruptcy Act and Distraint Act, on principle ˝seen-sold˝, therefore all subsequent claims of the buyers are escluded. The sale will be executed by an oral public auction – public bidding on principle ˝who gave more˝, with prior collection of written applications for the auction.

The lowest starting price is stipulated in section A/ of this Decision.

2) All domestic and foreign legal and natural persons are entitled to submit the written application and participate in oral auction on the terms and conditions set out in this Decision and additionally for the foreign persons on the terms that they may gain the property ownership rights in the Republic of Croatia, all as prescribed by positive rules. The bid must content all data on bidder (name, address, OIB i.e. personal identification number, price and signature for natural persons, respectively for legal persons: firm/corporate name, headquarters/address, MBS i.e. corporate subject number, OIB, full name and surname of the person duly empowered to sign and seal), and specifying the real property which they intend to buy and the bid price. The property specified in section A/I and II is sold as an economic complex with all the equipment in the same. Enclosed to the bid is to be the excerpt from bidder´s entry in the respective register and the evidence on paid bid security.

3) The hearing for public opening of submitted written applications and oral public auction will be carried out on: TUESDAY – 04.June 2013 at 09,00 o'clock (nine), at the Commercial Court in Split, Sukoišanska 6, room No.22-cellar part.

4) The bidders must submit the written application for auction and pay the bid security by 31. May 2013 (friday). A bid security amounts 10% of the starting sales price specified in section A) of this Decision.

A bid security is to be paid to the bankruptcy Debtor´s giro account No.:

2330003-1552526072 established with the SPLITSKA BANKA d.d., Split, indicating the purpose of the payment: ˝bid security in the case file No.: 14. St-739/11˝.

Besides the application for auction the bidders have to submit the evidence on paid bid security. The written application for auction with the evidence on paid bid security are to be submitted by friday, 31 May 2013 the latest, to the address: Commercial Court in Split, 21000 Split, Sukoišanska 6, with designation: ˝Bid for auction according to the public announcement in the case file No.:14.St-739/11 – do not open˝.

5) Applicant who fails to pay a required bid security has no right to participation on public auction;

6) To the buyer the paid bid security will be reckoned in the price, and to the other bidders the bid security will be returned within three days from the date of hearing for sale.

7) The most favourable bidder, whose bid would be accepted on auction, is obliged to pay the total buying price decreased for prior paid bid security within 30 days from the date of public auction. If he fails to pay the buying price in this term, he will lose the right of bid security refund;

8) The applicant for auction who withdraws the application before starting the public auction or desists from bidding, or does not pay the sales price in term, shall be deemed to have withdrawn from the purchase and will lose the right of bid security refund;

9) The sales is performed on principle ˝seen-sold˝ and escludes all subsequent claims of the customers.

10) All the costs in relation to the purchase and sale, i.e. taxes, administrative fees, certification costs and other dues will be borne by buyer;

11) The sale is performed pursuant to the rules of the Distraint Act;

12) The auction can be done if only one applicant participates;

13) Further information and arrangements in connection with the survey of property which is ordered to be sold according to this Decision can be obtained every working day from 09.00 to 14.00 hrs by arrangement with the Bankruptcy Estate Manager, Mr. Ivo Jukić, on a cell phone No. 021-225-417.

14) This decision will be announced on the Notice Board and in the Court´s Bankruptcy Registry Office at the Commercial Court in Split, Split, Sukoišanska 6. Bankruptcy Estate Manager is directed to announce the same in shortened version as an Advertisment in the newspaper ˝Slobodna Dalmacija˝, noting that a complete text should be found on the Notice Board at this Court and on the website of the Croatian Chamber of Commerce – Split and the High Commercial Court of the Republic of Croatia in Zagreb. Furthermore, the Bankruptcy Estate Manager is directed to provide this Court with two copies of a complete announcement text, for placing it on the Notice Board of the Court and to submit immediately a complete announcement text and it´s English version to the Croatian Chamber of Commerce and to the High Commercial Court of the Republic of Croatia in Zagreb.