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Croatia's Djuro Djakovic Group says bank account unblocked

Author Iskra Pavlova
Croatia's Djuro Djakovic Group says bank account unblocked Djuro Djakovic headquarters; Source: Djuro Djakovic

ZAGREB (Croatia), November 8 (SeeNews) - Croatia's diversified group Djuro Djakovic [ZSE:DDJH] said on Friday its bank account has been unblocked.

Djuro Djakovic Group gave no further details in a filing submitted to the Zagreb Stock Exchange (ZSE).

Following the announcement of the unblocking of the group's account, Djuro Djakovic's shares gained 4.21% to 4.97 kuna by 1500 CET on Friday on the ZSE, after falling 10.62% on Thursday.

The bank accounts of the group and two of its four subsidiaries - Djuro Djakovic Special Vehicles and Djuro Djakovic Industrial Solutions, were blocked on October 30, shortly after the group revealed it was in talks with creditors in an attempt to resolve a liquidity crisis which has left it short of funds to pay out the September salaries.

Last week, the group's board chairman Marko Bogdanovic resigned to meet the demands of some 600 employees who went on strike to seek his resignation and the payment of their September salaries.

Economy minister Darko Horvat said over the weekend that the defence ministries of Croatia and the US were in talks on a joint project on the future of Djuro Djakovic, in which the US government could participate financially, logistically, as well as via transfer of knowledge and technology.

Horvat also said that the Croatian government in Zagreb was in talks with two European companies interested in entering into a strategic partnership with Djuro Djakovic, but did not reveal their names.

According to earlier media reports, UK-headquartered BAE Systems is interested in entering Djuro Djakovic's ownership structure, planning to produce the Bradley combat vehicles in Croatia's Slavonski Brod where the group is based.  

Horvat has also said that Djuro Djakovic's workers will receive their delayed salaries for September this week.

The group's net loss widened to 38.75 million kuna ($5.7 million/5.2 million euro) in the first nine months of the year, from a net loss of 5.4 million kuna in the like period of 2018.

The group's main business lines are manufacturing of equipment for steelworks, industrial and power plants and production of rolling stock and special-purpose motor vehicles.

(1 euro = 7.43571 kuna)