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Bosnian entity's oil terminals in Croatian seaport face bankruptcy

SARAJEVO, Jan 10 (Hina) - The government of Bosnia and Herzegovina's Federation entity on Thursday adopted a decision whereby it refuses to be a co-debtor of Naftni Terminali FBiH, an oil terminals company from the Federation which is based in the Croatian seaport of Ploce and faces bankruptcy on January 13 as well as the dismissal of about 80 workers from Croatia who are employed there.

Instead of giving the company additional guarantees, the Federation government recommended an out-of-court settlement with the British company Deltagrip Trading, which has requested that the company's property be seized as compensation for a cancelled lease contract.

The settlement should refer to a five-month delay of the bankruptcy, during which time the money should be found to compensate the British company, the Federation government said in a statement.

The International Court of Arbitration of the International Chamber of Commerce has ruled that Naftni Terminali FBiH has to pay Deltagrip Trading about EUR 7.6 million in damages for cancelling a contract on the lease of oil tanks in Ploce in 2010. Based on this ruling, a court in Sisak, Croatia delivered a decision on the property seizure because of which the oil terminals company's account has been blocked for months.

The Federation government said the attempt to settle out of court with the British company did not mean that the arbitration court's decision was being accepted, and ordered Terminali to do everything to protect Federation property in Ploce.

Federation Energy Minister Erdal Trhulj told reporters the Croatian judiciary was expected to deliver a ruling on the matter because the arbitration court's decision was not yet recognised in Croatia, where Terminali is based. "All this is causing damage to Terminali, so certain proceedings will be launched against Croatia," he said.

The value of the company's terminals in Ploce is estimated at EUR 300 million.

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