Croatia's Jadroplov, Norddeutsche Landesbank close to financing deal

In July, Jadroplov started talks with Norddeutsche Landesbank on finding a solution concerning its debt to the bank, after the lender announced plans to stop crediting the shipping industry and suspend the restructuring of existing loans extended to the shipping sector.

On December 10 the bank expressed its readiness to close all existing claims against firms belonging to Jadroplov for a price of at least $28 million (25.3 million euro), Jadroplov said in a filing with the Zagreb bourse on Tuesday.

The financial deal depends on the capacity of the firm to secure the required amount via investment companies, as well as on the fulfilment of possible additional requirements of the bank, Jadroplov said without giving further details.

It provided no information about the size of its outstanding loans to Norddeutsche Landesbank.

Back in December 2018, the Croatian government said it would issue a $10 million guarantee for 20% of the value of a $49.94 million kuna loan to Jadroplov that was to be extended by Norddeutsche Landesbank and to be repaid in seven years.

Last month Jadroplov's shareholders approved the management's plan to hike its capital ahead of a planned privatisation, via issuing new shares worth up to 40.9 million kuna ($6.1 million/5.5 million euro), which is half the existing share capital. The capital increase is expected to take place either in one go or in several moves within a five-year period.

For some time now, the company has been undergoing a restructuring process approved by the Croatian government and the European Commission, which includes plans for its privatisation, Jadroplov said in November.

Via the planned capital hike Jadroplov hopes to find a strategic partner that would help improve its competitiveness on international markets by resolving losses, restructuring overdue debts and investing in assets needed for continuing the shipping company's business.

Jadroplov's consolidated net loss widened to 51 million kuna in the first nine months of 2019, from 40 million kuna a year earlier.

The Croatian state controls a 63.6% stake in Split-based Jadroplov through Croatia's centre for enterprise restructuring and privatisation, CERP. The Croatian Pension Insurance Institute, HZMO, owns a 6.8% stake, also through CERP, while the remainder belongs to smaller shareholders.

Jadroplov shares closed down 0.84% at 11.80 kuna on the Zagreb bourse on Tuesday. They did not trade at opening on Wednesday.

(1 euro = 7.43876 kuna)