January 3 (SeeNews) - Croatia's troubled diversified group Djuro Djakovic [ZSE:DDJH] said the business account of its unit Djuro Djakovic Special Vehicles (DDSV) has been unblocked.
The account was unblocked as of January 31, the group said in a statement on Friday without providing further details.
The news comes a week after Djuro Djakovic signed a 150 million kuna ($22 million/20 million euro) state-guaranteed loan deal with local lender Hrvastka Postanska Banka (HPB) aimed at helping the group pay arrears to suppliers and the state, as well as buy needed materials to complete three important contracts that have been in progress. The loan approval follows a government decision to issue up to 300 million kuna guarantees for life-saving credits to Djuro Djakovic.
The government in Zagreb said last month that some 150 million kuna of the overall planned financing will be used mainly to service DDSV's payments to suppliers and creditors on contracts in progress, worth a combined 40.2 million kuna, including the production of 34 railcars for Austria's Swietelsky, 80 railcars for US-based GATX and 60 railcars for France's Ermewa.
DDSV produces freight and tanker wagons, special purpose vehicles such as battle tanks, wheeled armoured vehicles, and engineering machines.
Last week, Djuro Djakovic said that the commercial court in Osijek opened on January 30 pre-bankruptcy proceedings at another of its units, Djuro Djakovic Industrijska Rjesenja (DDIR).
Djuro Djakovic's shares gained 5.26% to 5.0 kuna at the Zagreb bourse opening on Monday.
(1 euro = 7.44555 kuna)