You have 10 free articles left this month. Get your freeBasic subscription now and gain instant access to more.

Croatian court drops bankruptcy proceedings against 3. Maj shipyard

Author Iskra Pavlova
Croatian court drops bankruptcy proceedings against 3. Maj shipyard Photo: Goran Kovacic/PIXSELL

ZAGREB (Croatia), September 26(SeeNews) - The commercial court in Riejka said it has decided not to launch bankruptcy proceedings against Croatian shipyard 3. Maj after the company proved it has settled all overdue debt.

On September 25, 3. Maj submitted with the court evidence that its account is no longer blocked over unpaid debt, the court said in a statement on Wednesday.

The court's decision comes after the government stepped in to help troubled 3 Maj avoid bankruptcy and restart production.

In particular, the Croatian Bank for Reconstruction and Development (HBOR) approved earlier this month a 150 million kuna ($22.2 million/20.3 million euro) life-saving loan to 3. Maj, supported by a government guarantee.

A condition for the loan approval was that all 3. Maj creditors, including the state, should agree to postpone until September 1, 2021 the repayment of debt owed to them by the shipyard.

3 Maj is part of troubled shipbuilding group Uljanik. The group includes another major shipyard in Croatia, Uljanik Shipyard, along with smaller subsidiaries.

In May, a Croatian court launched bankruptcy proceedings against Uljanik Shipyard on a request by the country's financial agency, citing the shipyard's overdue debt. Subsequently, the court also launched bankruptcy proceedings against the Uljanik Group.

(1 euro = 7.4054 kuna)