You have 10 free articles left this month. Get your freeBasic subscription now and gain instant access to more.

Croatia's Uljanik Group should continue operations - bankruptcy trustee

Author Iskra Pavlova
Croatia's Uljanik Group should continue operations - bankruptcy trustee Photo: Milivoj Mijosek/Glas Istre

ZAGREB (Croatia), October 15 (SeeNews) - The creditors of Croatia's troubled shipbuilding group Uljanik should vote at their meeting on October 25 to allow the company to continue operations, the bankruptcy trustee said.

In addition, the creditors should authorise the bankruptcy trustee, Marija Ruzic, to prepare within 30 days Uljanik's business plan and at the same time to establish whether there are grounds for drafting a bankruptcy plan, Ruzic said in a statement on Monday.

These are several of the proposals Ruzic has made to Uljanik's creditors in her report on the economic situation at the company.

The bankruptcy trustee also said that the total value of the five vessels under construction at Uljanik is estimated at 1.63 billion kuna ($242 million/219 million euro), while several creditors have settlement rights on these vessels in the amount of 2.93 billion kuna.

Moreover, the second tier of creditors have submitted claims worth 4.86 billion kuna against the company, according to the report.

Uljanik Group's share capital of 100.7 million kuna is divided into some 3.356 million shares of 30 kuna in par value each.

In May, the commercial court in Pazin decided to launch bankruptcy proceedings against Uljanik Group, several days after opening such proceedings against its key member Uljanik Shipyard.

The group comprises another one of Croatia's largest shipyards - 3 Maj, which avoided the launch of bankruptcy proccedings last month after the government decided to issue guarantees for a 150 million kuna loan from state-owned development bank HBOR to 3. Maj.

Uljanik Group has been in financial trouble in the past years due to the adverse effects of the global financial crisis on the shipbuilding sector with the government declining to endorse earlier this year a proposed restructuring of the two shipyards, considering the risk for the country's economy as too big.

In late 2018, the government had to pay state guarantees worth 2.54 billion kuna on behalf of Uljanik Group, after the group failed to meet contractual obligations.

(1 euro = 7.43644 kuna)