Rijeka's 3. Maj shipyard has signed agreements with suppliers and sub-contractors to defer the majority of its debts or approximately HRK 111 million, which is about 82% of all claims by creditors, so we believe that we have met the government's first condition, the chair of the shipyard's supervisory board, Juraj Soljic, told Hina on Monday.

Soljic said that the shipyard’s total debt amounted to HRK 138 million, excluding overdue wages and contributions on wages of HRK 34 million, adding that he expected more agreements to arrive by post.

“Without preempting the Finance Ministry’s decision, we at 3. Maj consider that we have met the government’s first condition,” Soljic underscored.

He confirmed that the national electricity provider HEP, which is one of the largest creditors, had signed an agreement to delay 85% of its dues for a period of 2 years while the remaining 15% would be paid to creditors from a new loan to the shipyard. He added that other state institutions had done the same.

Last month the government approved the issuance of a conditional payment guarantee in the amount of HRK 150 million for a loan from the Croatian Bank for Reconstruction and Development in an effort to re-launch production so that ships that have been started at the shipyard can be completed.

The finance ministry will issue the conditional guarantee provided that the requirements for that have been met by September 5.

One of the main requirements is for creditors to agree to accept a payment of 15% of their claims immediately while agreeing not to block the shipyard’s bank account for the next two years.

A hearing at Rijeka Commercial Court to determine whether conditions exist to launch bankruptcy proceedings for the shipyard has been adjourned several times, and the next hearing has been set for September 26. In the meantime, the Economy Ministry was obliged by August 29 to define a financial model and other conditions to relaunch production.

A model was to be found that would ensure unfreezing the shipyard’s account, to pay workers their overdue wages and to define the completion and payment of incomplete ships with clients.

(EUR 1 = HRK 7.39)