April 26 (SeeNews) - Croatian privately-owned DIV Group has filed for a pre-bankruptcy procedure with Zagreb Commercial Court due to an outstanding debt of 41.7 million kuna ($5.9 million/5.5 million euro), local media reported.
Considering the importance of the group and its subsidiaries for the national economy, DIV asked the court to open a case as soon as possible, and to take a decision to launch a pre-bankruptcy procedure, public broadcaster HRT reported on Monday.
DIV Group consists of more than 55 companies involved in fastener manufacturing, shipbuilding, steel structure solutions, diesel and LNG-powered engine manufacturing, casting, railway infrastructure, and custom design mechanical parts, with more than 4,000 employees in 30 countries. The parent company of the group has 862 employees.
The group is owner of Croatian shipyard Brodosplit. According to earlier media reports, DIV's bank account was blocked in mid-April after the group provided financial support to Brodosplit.
Due to the sanctions imposed on some Russian banks over the Russian invasion of Ukraine, Brodosplit's access to 60 million euro in financing from VTB Europe, a Russian-owned bank based in Frankfurt, for the construction of two ships, has been blocked. Brodosplit was unable to withdraw in full a loan from VTB Europe and DIV had to help Brodosplit with its own funding.
Thus, DIV invested 60 million euro of own funds in the two vessels, instead of 30 million euro as planned, exhausting it financially, state-run Croatian news agency HINA quoted DIV as saying earlier this month.
(1= 7.561 Croatian kuna)