"An examination of the documentation which the Traubi International Corporation of Salamon Berkowitz submitted by 5pm on Tuesday has found that the bidder submitted incomplete and unacceptable documentation and is therefore considered to have decided not to sign a contract for the purchase of Dalmacijavino," the statement said.

The statement recalled that the State Property Management Agency (AUDIO) had earlier warned Traubi International that it would be considered to have abandoned the plan to sign the contract if it failed to meet the requirements within the given time frame.

"Of the documentation required by the tender conditions, a bank guarantee as a crucial element of the bid and an opinion on the proposed sales contract were not submitted at all," the statement said.

Deputy Economy Minister Tamara Obradovic Mazal told Croatian Radio that the documents submitted did not meet the requirements and that the contract would not be signed. She confirmed that conditions had been created for the bankruptcy of Dalmacijavino.

Traubi International said in a statement that it was fully involved in activities relating to the acquisition of Dalmacijavino and the initiation of restructuring following acquisition. It added that CEO Salamon Berkowitz had extended his stay in Croatia in order to personally take part in the activities, give instructions, and encourage his team.