(Repeats story published late on Tuesday)
* Jean-Francois Ott questioned on Tuesday, released
* Orco and Croatia at odds over running of Suncani Hvar
* Police file charges for financial damage in Orco unit
ZAGREB/PRAGUE, Jan 4 (Reuters) - The chief executive of
Central European real estate developer Orco Property Group
<ORCO.PA> <> was held for questioning by police in
Croatia on Tuesday and later released, Orco said.
The detention of CEO Jean-Francois Ott, at a Zagreb hotel,
happened a day after a shareholders meeting of Orco's Croatian
unit in which the Croatian government holds a stake. Orco and
the government have been at odds over the unit, hotel operator
Suncani Hvar.
Officials at Orco and Croatian police did not reveal what
the questioning focused on.
Croatian state television reported police had filed charges
against six people for inflicting a financial damage worth 16
million kuna ($2.89 million) at Suncani Hvar from 2005 to 2008.
No names were revealed.
Croatian police spokesperson was not available for immediate
comment. Orco did not mention any charges in its statement.
"This morning, Tuesday, January 4th, 2011, Mr. Ott was
invited to accompany the representatives of the local police
authorities in order to respond to questions without any sort of
prior notice," Orco said in a statement.
"Mr. Ott voluntarily complied to assist and answer any
questions scheduled to take place in the late afternoon. He flew
back to Paris in the evening."
Orco said it was concerned by the action taken by the
Croatian authorities.
"The Orco board considers as unacceptable that Mr. Ott has
been retained in Croatia without any motive justifying such
behavior. Mr Ott acted in Croatia in quality of representative
of the majority shareholder and never acted in any executive
capacity of any Croatian company."
The state television said Ott was questioned in relation to
a restructuring of Suncani Hvar, the money-losing Adriatic coast
hotelier.
The country's privatisation fund says Orco failed to meet
its obligations in renovating the hotelier. Orco said in the
statement it was the state fund that failed to meet its
obligations.
Ott earlier told Croatian television he had been surprised
when two policemen approached him after the general meeting on
Monday.
"We did nothing wrong. Our books are open. We are a public
company and accessible to co-operate with justice officials,"
Ott said on TV.
Orco shares in Prague dropped 2.2 percent to close at 178.96
crowns on Tuesday.
Orco, which has projects mostly across Central Europe, has
restructured its debt after the financial crisis badly hit the
real estate sector in the region.
($1=5.533 Croatian Kuna)
(Reporting by Igor Ilic in Zagreb, Jan Lopatka and Jan Korselt
in Prague; Editing by Richard Chang and Steve Orlofsky)
