ZAGREB, Sept 4 (Hina) - The Croatian government on Thursday issued EUR3.7 million worth of guarantees to the Rijeka-based Viktor Lenac shipyard for the construction of two gas platforms, of which 1.4 million to secure a good
performance.
ZAGREB, Sept 4 (Hina) - The Croatian government on Thursday issued
EUR3.7 million worth of guarantees to the Rijeka-based Viktor Lenac
shipyard for the construction of two gas platforms, of which 1.4
million to secure a good performance. #L#
Talking to reporters after a closed government session, Economy
Minister Ljubo Jurcic said that had the guarantee not been issued,
the two platforms would have been built abroad and Lenac been left
without orders, eventually going bankrupt.
The minister said the ailing shipyard's survival would depend on
the final answer owners and creditors gave to a contract they signed
in July. The answer should be provided between September 15 and 20.
The July deal envisages putting US$28 million into Lenac, to pay
$23.5 million of creditors' claims and complete investments in the
shipyard. If any of the six or seven parties involved bails out, the
agreement will not be viable and Lenac will have to file for
bankruptcy, said Jurcic.
The final decision on the contract has to be made by banks'
management and supervisory boards. The government expects answers
by the middle of the month.
Jurcic said the new Lenac management had been instructed to draw up
a detailed list of assets and liabilities in case of bankruptcy. If
the latter occurs, the government will be the shipyard's main
creditor with $60 million or more and will take over the company, he
said.
Current analyses show Viktor Lenac could make $35-38 million in
ventures this year, $60 million next year and $70 million in 2005,
said the minister.
He voiced hope creditors would unfreeze Lenac's account following
the government guarantee issued today and reach an agreement on the
rescheduling of their claims.
(hina) ha