[4][5] The attack came at a time of heightened tensions due to an orchestrated ambush by the Serbian police against the Kosovo Liberation Army (KLA) who were smuggling weapons and supplies from Albania.
[10] That evening, suspected and alleged KLA gunmen entered a Serb-owned café in Peja and opened fire on the patrons, killing six Serb youths.
[12] The KLA denied responsibility; journalist Tim Judah noted that some of the diplomats thought the attack might have been carried out by a rogue unit.
[13] The shooting appalled foreign emissaries, and at a meeting with Milošević the following day, Holbrooke condemned it as an act of terrorism and described the situation in Kosovo as "very grave".
[16] The Organization for Security and Co-operation in Europe (OSCE) later made a report on the event and its aftermath, calling it the Panda Bar incident.
[20] In December 2013, the then First Deputy Prime Minister of Serbia Aleksandar Vučić acknowledged that there is no evidence that murder was committed by Albanians.