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STATE MAY BUY VIKTOR LENAC SHIPYARD FOR ONE KUNA - MINISTER

ZAGREB, Aug 7 (Hina) - Unless the owners of the Viktor Lenac shipyard and creditor banks decide by August 11 whether they will provide US$8 million for the operation of the shipyard, Economy Minister Ljubo Jurcic said on Thursday he might propose that the state buy the shipyard for one kuna (approx. 0.13 euros).
ZAGREB, Aug 7 (Hina) - Unless the owners of the Viktor Lenac shipyard and creditor banks decide by August 11 whether they will provide US$8 million for the operation of the shipyard, Economy Minister Ljubo Jurcic said on Thursday he might propose that the state buy the shipyard for one kuna (approx. 0.13 euros). #L# Jurcic told Hina that the owners were responsible for the operation of the private shipyard, saying that it was not fair to criticise the government for the situation in the shipyard because it was proposing solutions all the time, unlike the owners and creditors who he said had proposed nothing. Jurcic said that the government had given the creditors and owners the deadline of August 11 to decide whether they would participate in a "mini-agreement" worth eight million dollars. The state would participate in the agreement with US$3 million, while the rest of the funds would be provided by the creditor banks and the owners. The funds would be used to organise the business operation of the shipyard and help it to get over its financial difficulties until October, when a principle, US$28.7 million agreement on the financial restructuring of the shipyard is to enter into force. The shipyard's majority owner, Giancarlo Zacchello, who is expected to participate in the mini-agreement with about US$1.7 million, said he would provide the funds on condition that the state, the shipyard's major creditor, did not initiate bankruptcy proceedings. (hina) vm sb

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