November 28 (SeeNews) - Croatian shipyard 3. Maj said it turned to a 713 million kuna ($105 million/96 million euro) loss last year, from a 3.0 million kuna profit in 2017, as revenues collapsed, while costs stayed rather high.
Operating revenue dropped to 112 million kuna in 2018 from 797 million kuna a year earlier, while operating costs fell to 705 million kuna from 793 million kuna, the company said in an interim financial statement on Wednesday.
In September, the commercial court in Riejka decided not to launch bankruptcy proceedings against 3. Maj because the shipyard had proved it had settled all overdue debt and submitted evidence showing its account was no longer blocked over unpaid debt.
The court's decision came after the government said it would issue guarantees for a 150 million kuna life-saving loan from state-owned development bank HBOR to help 3. Maj pay wage arrears and restart production. A condition for the loan approval was that all 3. Maj creditors, including the state, had to agree to postpone until September 1, 2021 the repayment of debt owed to them by the shipyard.
3 Maj is part of troubled Croatian 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 and the Uljanik Group at the request of the government's financial agency, citing the companies' overdue debt.
(1 euro = 7.43763 kuna)