Europe Century Shipyard Faces Bankruptcy Reorganization

- Jan 30, 2018-

Europe century shipyard faces bankruptcy reorganization


Not all European yards have better days, even with cruise orders. Europe's 100-year shipping company, Croatia's Uljanik Shipyard, is currently in arrears with its suppliers' debts and debts, as workers go on strike in arrears and even bankrupt.


It is learned that the European Commission recently approved the plan of the Croatian government and agreed to provide 96 million euros (about 115.6 million U.S. dollars) of state-guaranteed loans to Croatia's Uljanik Shipyard.

The European Commission said the loan aims to protect the solvency of the Uljanik shipyard and ensure that shipyard workers receive their wages in December in line with EU aid regulations. glenflange


Following the announcement, Uljanik's union decided to postpone the planned strike on January 23. However, it is reported that some of Uljanik's workers protested in front of the management building and demanded that the current management resign. Uljanik's workers were unhappy with failing to receive their December wages, but the union agreed to postpone the strike plan for 48 hours so that management could pay its outstanding wages.

Uljanik said the loan will be provided by the Croatian Postal Bank (HPB) and / or other Croatian domestic or international banks. The loan will allow Uljanik to pay supplier debts and other emergency debt in the coming months, while Uljanik prepares for a restructuring plan while preventing its bankruptcy.


European Commission member Margrethe Vestager said the Croatian state-guaranteed loan will help Uljanik continue to operate, maintain the position of 1,800 workers and develop a solid restructuring strategy to ensure future development; Uljanik's restructuring plan must enable the company in the absence of sustained public support In the case of ensuring long-term viability, local employment in Istria is protected on a sustainable basis.

Uljanik Shipyard has been in financial difficulties for the past few years due to the continued downturn in the global shipbuilding industry and the detrimental impact of new orders for shipping.glenflange


The European Commission said in the coming months an independent auditor will monitor Uljanik's liquidity needs based on a weekly liquidity plan. Finally, Croatia promised to announce Uljanik's restructuring plan within a maximum of six months. To date, two companies Kermas Energija and Palumbo Group have expressed interest in joining Uljanik's shareholding structure.


Uljanik chairman Gianni Rossanda said Uljanik's financial restructuring required more than 450 million euros (about 551.5 million U.S. dollars). He said the amount would be used to cover outstanding debt and pay for various costs, including the construction of an infrastructure to provide new services and likely ship maintenance.


Uljanik's restructuring plan is expected to result in layoffs, though it is not yet certain how many layoffs will be made. As part of the reorganization, Uljanik plans to cut its current production to shift its focus to the construction of value-added and highly sophisticated vessels such as bucket dredgers and luxury cruise ships.


Uljanik is a well-known European shipyard, founded in 1856, built bulk carriers, oil tankers, car carriers, livestock carriers, dredgers and cruise ships. Up to now, Uljanik Shipyard holds 13 orders, including a 16500GT cruise ship, hand-held orders ranked the top ten in Europe.