The European Commission (EC) has found the Croatian plans for restructuring the shipping company Jadroplov to be in line with EU state aid rules, and cleared 105.6 million kuna (€14.2 million) in restructuring aid for Jadroplov.

“The Split-based Jadroplov, which has suffered from reduced volumes and falling prices in worldwide trade of dry bulk cargo, has started carrying out a comprehensive restructuring programme aimed at reducing costs, focusing on its core business, and alleviating the financial pressure stemming from large debts,” the Commission said on Wednesday.

The EC added that Croatia would support the process with a subsidy and two state guarantees for a total state support amount of €14.2 million, and that the restructuring plan would enable the company to become viable in the long term without continued state support.

“Jadroplov will make their own significant contribution to the cost of restructuring of 144.9 million kuna (€19.5 million), in particular by securing financing from the private market and through asset sales. Moreover, the assets sale contributes to reducing the potential distortions of competition brought about by the restructuring aid. The Commission therefore concluded that the restructuring plan was in line with EU State aid rules, in particular the 2014 Rescue and Restructuring Guidelines,” said the Commission.

Jadroplov, founded in 1947, is a joint stock company. Its core business is the international maritime transport of goods with its own tramp ships, which, as opposed to freight ships, trade on the spot market without fixed schedule or scheduled ports of call. They also specialise in crew management and technical maintenance of ships.

(€1 = 7.4 kuna)

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