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ZAGREB (Croatia), October 2 (SeeNews) - A Croatian commercial court has postponed until the end of October a decision on whether Uljanik Shipyard is going into bankruptcy or liquidation, local media reported.
The commercial court in the town of Pazin has postponed Wednesday's hearing on the issue until after October 25 when a bankruptcy hearing against the umbrella company, Uljanik Group, is scheduled, news wire SeeBiz reported on Tuesday.
In May, the Pazin court launched bankruptcy proceedings against Uljanik Shipyard and later on against Uljanik Group, in a response to a request submitted by Croatia's financial agency FINA over overdue debts.
The group has been in financial trouble for some time due to the adverse effects of the global financial crisis, which resulted in its shipyards failing to meet contract obligations and losing vital shipbuilding deals.
Uljanik Group also comprises the 3 Maj shipyard, along with smaller subsidiaries, which was also under threat of bankruptcy.
Last week the commercial court in Riejka decided not to launch bankruptcy proceedings against 3. Maj after the company proved it had settled all overdue debt thanks to the government stepping in to help it avoid bankruptcy and restart production.
In particular, the Croatian Bank for Reconstruction and Development (HBOR) approved in September a 150 million kuna ($22 million/20 million euro) life-saving loan to 3. Maj, supported by a government guarantee, thanks to which the company restarted operations and was able to pay out salaries arrears.
(1 euro = 7.41507 kuna)