Croatia's Uljanik shipyard in Pula placed in bankruptcy

Rijeka also risks bankruptcy, dismissals

13 May, 17:32

    I cantieri di Uljanik (Foto di Domenico Cacciapaglia) I cantieri di Uljanik (Foto di Domenico Cacciapaglia)

    ZAGREB - Croatia's largest shipyard, the Uljanik in Pula, has been formally placed in bankruptcy following a year of strikes and attempts by the government in Zagreb to find a strategic partner.

    The decision was made by a court in Puzin, in Istria County, which had to ascertain that the company's accounts had been blocked for nearly eight months and there was no other solution than bankruptcy.

    The shipyard's nearly 1,200 workers, who have been on strike for months, will be dismissed in the coming days.

    The 3. Maj shipyard in Rijeka is part of the same company as the Uljanik and will likely be placed in bankruptcy as well in the coming weeks.

    Two months ago, the government had preliminarily accepted a recapitalisation proposal for the two shipyards by a strategic partner, Brodosplit in the city of Split, in cooperation with Italian shipbuilding company Fincantieri.

    In the meantime, however, calculations of the restructuring showed that it may have costed the Croatian government about a billion euros, an amount the government was not ready to invest.

    The cost of the bankruptcy will weigh heavily on government coffers given that the state is committed for hundreds of millions of euros through bank guarantees granted to the company in recent years.

    The two shipyards have been in a serious insolvency crisis for months as a consequence of massive losses generated in the past two years.

    Last month, 12 former directors and managers of the two shipyards were arrested for embezzlement and fraud in their management.(ANSAmed).

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