In November 1944 the Independent State of Croatia reorganized its Armed Forces to combine the units of the Ustaše and of the Army of the Independent State of Croatia into 18 divisions, comprising 13 infantry, two mountain, two assault and one replacement divisions, each with its own organic artillery and other support units. There were also several armoured units. From early 1945 the divisions were allocated to various German Corps, and by March 1945 were holding the Southern Front. In the spring of 1945 the German Army and their allies were in full retreat from the Yugoslav Army. In early April the Yugoslav 3rd Army, under the command of Kosta Nađ, fanned out through the Drava Valley region, reaching a point north of Zagreb, and crossed the old Austrian-Yugoslavian border in the Dravograd sector. The 3rd Army closed the ring around Axis forces when its advanced motorized detachments linked up with detachments of the 4th Army in Carinthia. This action prevented the German Army Group E from escaping northwest across the Drava river. Completely surrounded, General Alexander Löhr, Commander-in-Chief of Army Group E was forced to sign the unconditional surrender of the forces under his command at Topolšica, near Velenje in Slovenia, on Wednesday May 9. Nevertheless, some of his troops, along with collaborationist units, namely the Croatian Armed Forces, the Slovene Home Guard, the Montenegrin People's Army, and elements of other factions, continued to resist and tried to fight their way west to seek the protection of the British forces at Klagenfurt.
Battle
Just before 9 am on May 14, a significant force of mostly Croatian Armed Forces units with some Montenegrin People's Army and Slovenian Home Guard troops approached Yugoslav Army positions at the Šurnik farm near Poljana demanding free passage west. This was refused, and firing commenced on both sides. Croatian Armed Forces attacks, including artillery fire support, intensified in the afternoon, evening and overnight, finally ceasing on the morning of15 May with the arrival of around 20 British tanks. Tense negotiations followed, during which British officers made it abundantly clear that they would not offer protection to the collaborators and that unconditional surrender to the Yugoslav Army was the only option. White flags of surrender were finally raised around 4 pm on 15 May. Casualty estimates by the Yugoslav Army were at least 310 Croatian Armed Forces and Axis dead in the two main locations of fighting, and 250 wounded. On the Yugoslav Army side, losses were considerably lower, numbering fewer than 100 dead and wounded. The surrender of this last area of Axis resistance occurred 8 days after the official end of World War II in Europe, which was the surrender of the Germans on Monday 7 May 1945. On May 15, the Bleiburg repatriations began.
