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Croatia's Djuro Djakovic in talks with creditors, delays Sept salaries

Author Iskra Pavlova
Croatia's Djuro Djakovic in talks with creditors, delays Sept salaries Djuro Djakovic headquarters; Source: Djuro Djakovic

ZAGREB (Croatia), October 23 (SeeNews) – Croatia's diversifiled group Djuro Djakovic [ZSE:DDJH] said on Wednesday it has been in talks with creditors, trying to resolve its current liquidity crisis which has left it short of funds to pay out the September salaries to employees.

The blue-chip group and two of its four affiliated companies could not distribute the wages for September due to lack of funds on the employers' accounts, Djuro Djakovic said in a filing with the Zagreb Stock Exchange (ZSE).

"The Group is trying to solve the problem via intensive negotiations with potential creditors and via a plan for further restructuring," it said, adding that the liquidity shortage has been caused by the lack of adequate financing for the group's production processes.

None of the companies which have failed to pay the salaries on time has its accounts blocked, Djuro Djakovic said.

The group swung to a consolidated net loss of 16.2 million kuna ($2.4 million/2.2 million euro) in the first half of the year, from a net profit of 5 million kuna in the like period of 2018.

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

In August, Djuro Djakovic said it signed a 137 million kuna contract to deliver wagons for cold rolled sheet steel coils to an unnamed French client, with the delivery expected to begin at the end of 2019 and continue throughout 2020.

Djuro Djakovic's shares traded 7.47% lower at 4.58 kuna by 1200 CET on Wednesday on the ZSE after losing 10% on Tuesday.

(1 euro = 7.44117 kuna)