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Croatian shipyard 3. Maj's accounts get temporarily blocked

Author Iskra Pavlova
Croatian shipyard 3. Maj's accounts get temporarily blocked Photo: Goran Kovacic/PIXSELL

ZAGREB (Croatia), October 14 (SeeNews) - Croatian shipyard 3. Maj said on Monday its accounts have been temporarily blocked over enforcement proceedings launched by an unnamed company.

The shipyard has taken the appropriate legal action against the proceedings since it does not recognise the respective claims as overdue and expects the issue to be resolved within a reasonable period of time, 3. Maj said in a filing with the Zagreb Stock Exchange.

It company did not provide further details.

The announcement comes several weeks after the commercial court in Riejka decided not to launch bankruptcy proceedings against 3. Maj because the company 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 decided to issue guarantees for a 150 million kuna ($22 million/20 million euro) life-saving loan from the state-owned development bank HBOR, aimed at helping 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 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 on a request by the country's financial agency, citing the firms' overdue debt.

(1 euro = 7.43130 kuna)