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MINISTER:SHIPYARD OWNER TO GIVE 1 MLN, GOVT TO ACTIVATE GUARANTEES

ZAGREB, Aug 11 (Hina) - The majority shareholder of the "Viktor Lenac" shipyard, Giancarlo Zacchello, should in the next several days pay one million US dollars for workers' wages, after which the Croatian government, as a sign of good will, will activate state guarantees worth US$7.4 million for the construction of a platform, Economy Minister Ljubo Jurcic said on Monday.
ZAGREB, Aug 11 (Hina) - The majority shareholder of the "Viktor Lenac" shipyard, Giancarlo Zacchello, should in the next several days pay one million US dollars for workers' wages, after which the Croatian government, as a sign of good will, will activate state guarantees worth US$7.4 million for the construction of a platform, Economy Minister Ljubo Jurcic said on Monday. #L# The minister today met representatives of the shipyard's trade union and its acting manager Ognjen Antunac to discuss solutions to the current situation in the company. Zacchello, who according to a previous agreement is to provide US$1.7 million, has promised to pay in a day or two half a million dollars and by September 1 another half a million, to be used for workers' salaries, Jurcic said. As a sign of good will, the government will then activate 7.4- million-worth state collateral it previously gave the shipyard for the construction of the "Marica" platform. These funds are earmarked funds and will not be used to cover previous losses and expenses, the minister said. Within a month's time experts should draw up a plan to reorganise the company's ownership, technological and financial structure. The government would supervise the process because of its significant financial involvement in the company, totalling some US$68 million, Jurcic said. The government's objective is to keep the company operational and to keep workers, he said. Jurcic could not say what would happen after September 1 and until October, when the company's owners and creditors are to reach agreement on its financial restructuring. He did say though that every move of the government would be conditional on concrete steps of the owner and creditor-banks. The minister could not say what would happen with the shipyard in the end, but he admitted that efforts were made to postpone bankruptcy as long as possible, as in case of bankruptcy all debts would have to be paid. He recalled that the company's debt totalled some US$120 million, while its obligations towards domestic and foreign suppliers amounted to around 25 million. The company has landed contracts worth some 35 million dollars. The company's owners, creditor banks and the Croatian Bank for Reconstruction and Development signed a US$28.7-million agreement on the shipyard's financial restructuring in July. According to some statements, the agreement should take effect in October. However, the agreement does not provide for the payment of debts to domestic suppliers, nor does it cover the period between July and October, Jurcic said. (hina) rml

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