September 18 (SeeNews) - The situation in Croatia's financially constrained shipbuilding group Uljanik is dramatic as the company finances are reaching a low point, the chairman of its management board, Gianni Rossanda, said.
Uljanik has a month to find a solution, Rossanda said in an interview aired by Croatian broadcaster N1 on Monday evening.
In order to avoid bankruptcy, Uljanik Group must receive the approval of the Croatian government and the European Commission for its restructuring programme submitted to the Commission on July 13.
"I don't know whether it is close to being agreed to. We have made changes based on intuition, based on events that have taken place in the past six months such as 3. Maj's role and status within the group", Rossanda said.
He explained that the Uljanik Group is working on a solution that will see the 3. Maj shipyard separated from Uljanik.
"That was not in the original restructuring plan. It foresaw production in both locations, which is unlikely today," Rossanda noted, revealing that 3. Maj may be taken over by a "renowned European partner".
The Uljanik Group is made up of two major shipyards Uljanik and 3. Maj, along with smaller subsidiaries.
In March, Uljanik chose local company Kermas Energija as its strategic partner under its call for recapitalisation.
When asked if that choice was a bad move for Uljanik, Rossanda replied that Kermas Energija was the only one to meet the restructuring requirements in the tender.
According to Uljanik's initial restructuring plan, the Croatian government was to finance some 60% of restructuring costs, while the strategic partner and the group would contribute 40%.
Croatia's government said last week that it sees three options for the resolution of the crisis in Uljanik - insolvency, a modified restructuring plan or a new strategic partner.