ZAGREB, Nov 27 (Hina) - The Croatian government is not willing to participate in the further financing of the Viktor Lenac shipyard and its CEO Ognjen Antunac will have to initiate bankruptcy proceedings, Economy Minister Ljubo Jurcic
said on Thursday.
ZAGREB, Nov 27 (Hina) - The Croatian government is not willing to
participate in the further financing of the Viktor Lenac shipyard
and its CEO Ognjen Antunac will have to initiate bankruptcy
proceedings, Economy Minister Ljubo Jurcic said on Thursday. #L#
The government has also decided to direct US$1.8 million from an
investment loan into the Workers' Claims Fund, he said after a
closed government session.
Jurcic hoped the decision would satisfy both workers and trade
unions, that production would continue, and that the establishment
of the Viktor Lenac Undergoing Bankruptcy company would help fulfil
all the contracts for which the Rijeka-based shipyard had been
given funds and government collateral.
If creditors agree, the bankrupt company will continue operating
and their claims will be settled in the bankruptcy proceedings,
said the minister.
Jurcic added that Croatian suppliers would have trouble collecting
their claims from the shipyard in the bankruptcy proceedings, but
that they could transform their claims into part-ownership in the
new company if they arranged so with the government.
The shipyard can generate between US$60 and 70 million annually,
employing 600-800 workers, he said, adding that the government
believed production had to continue and jobs be kept.
Jurcic recalled the government was the shipyard's biggest creditor
with more than EUR70 million, and that during bankruptcy
proceedings the government was in a much better negotiating
position than until now.
(hina) ha sb