Croatian court starts bankruptcy proceedings at Uljanik

By bne IntelliNews May 13, 2019

The commercial court at Pazin has decided to start bankruptcy proceedings at Uljanik Shipyard, its parent company, Uljanik Group said on May 13.

Uljanik, which owns the Uljanik shipyard in Pula and the 3. Maj shipyard in Rijeka, is in severe financial difficulties. The Croatian financial agency FINA asked the court on March 5 to open bankruptcy proceedings against it for a debt of HRK28.2mn (€3.8mn).

At the end of March, Prime Minister Andrej Plenkovic said the Croatian government was unable to endorse a proposed restructuring plan for the shipbuilder, with a cost of between HRK7.5bn and HRK10.8bn (€1bn-1.5bn), talking of the burden this would place on Croatian taxpayers.

According to Uljanik’s trustee, both conditions for launching bankruptcy proceedings at Uljanik have been met, i.e. inability to make payments and over-indebtedness. Uljanik’s debt currently totals HRK60mn, trustee Damir Majstorovic said.

Croatia will extend between HRK400mn and HRK500mn to cover guarantees for Uljanik, Finance Minister Zdravko Maric said on April 24, according to Total Croatia News.

The shipbuilder has lost several vessel construction contracts recently. On April 23, Uljanik said that Dredging and Maritime Management, owned by Belgium’s Jan de Nul, had requested the repayment of advance payments for a dredger Uljanik was commissioned to build.

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