Damen requests bankruptcy of Mangalia shipbuilding JV in Romania

The request was filed with the Constanta Tribunal on May 28, with the first hearing scheduled to commence on June 14, according to court documents submitted to the Constanta Tribunal and published on the justice ministry’s online portal earlier this week.

The creditor’s claim concerns loans totalling 160 million euro granted by Damen group to Mangalia shipyard since 2018, Radio Free Europe Romania quoted Laurentiu Gobeaja, trade union leader at the shipyard, as saying on Wednesday. Additionally, approximately 70% of the shipyard’s employees face technical unemployment, according to Gobeaja.

In 2018, Damen acquired Daewoo Shipbuilding & Marine Engineering’s 51% stake in the Mangalia shipyard and subsequently transferred 2% to the Romanian government, allowing the Romanian state to become majority shareholder in exchange for maintaining operational and managerial control of the joint venture.

In August 2023, Damen decided to terminate its contract with Romania regarding Mangalia shipyard, invoking a legal framework that violates the conditions offered in its favour by the Romanian state in 2018, as well as three years of blockages in the decision-making process and no type of involvement or financing from the Romanian partner, the Dutch group said in a press release at the time.

In April 2024, Damen sued Romania over the Mangalia shipyard contract at the Vienna International Arbitral Centre, demanding its cancellation, Radio Free Europe Romania quoted finance minister Marcel Bolos as saying at the time.