The Commercial Court in Pazin, Croatia launched bankruptcy proceedings for financially troubled shipbuilder Uljanik’s shipyard in Pula on Monday, following the government’s year-long efforts to save the yard.
The shipyard is the main yard of the Uljanik Group, and currently has outstanding debts of around 164.8m kuna ($25m). The bankruptcy proceedings have been postponed twice in the past few months.
A hearing is scheduled for May 17 to decide whether the bankruptcy proceedings will be launched for the group as well. The group also runs another shipyard 3. Maj in Rijeka.
The Croatian government owns 25% of the Uljanik Group but the government has refused to endorse the shipyard group’s restructuring plan as it believes the plan would create a financial burden on the state, however, the government remains committed to help solve the issue by seeking other solutions.
At the end of April, a delegation from China Shipbuilding Industry Corporation (CSIC) met with Uljanik management to discuss the future of the group’s two yards.
“We are heading for an end because we definitely found no reason to delay today’s hearing. The Chinese have shown a certain interest, but that’s a long process and no concrete offer has been received so far. However, independently of the bankruptcy, the Chinese partner can always get involved because bankruptcy won’t turn them away,” Sandi Bozac, chairman of Uljanik, told local media.
