The Rijeka Commercial Court on Wednesday suspended a case in which it was determining if conditions had been met to launch bankruptcy proceedings for the 3. Maj shipyard after its account was unblocked after a year.

Explaining her decision, Judge Liljana Ugrin said that on 25 September, the debtor presented the court with evidence that its account was no longer blocked.

Under the Bankruptcy Act, if a debtor becomes solvent before the completion of previously launched proceedings, the court suspends the proceedings.

The ruling also says that a document from the Financial Agency of September 25 confirmed that there are no longer any outstanding liabilities in 3. Maj’s account.

Last Thursday, the government authorised the Finance Ministry to issue 3. Maj with state guarantees so that it can seek a €26 million loan from the Croatian Reconstruction and Development Bank (HBOR) and commercial banks for the completion of a self-unloading bulk carrier for which a contract was signed with the Canadian company Algoma Central Corporation. The deadline for the delivery of the vessel is mid-September 2020.

The contract for the construction of that vessel was terminated a year ago, and the state paid HRK 239.07 million in enforced guarantees for it.

A new contract for the completion of the vessel was signed in early September this year and the contract price is EUR 36.6 million.

In August, the government approved collateral and a HBOR loan in the amount of HRK 150 million to restart production in 3. Maj.

After that, the dock’s workers were paid overdue wages until July as well as other claims. The shipyard’s creditors, suppliers and subcontractors with whom agreement was reached on the payment of 85% of their claims with a grace period of two years, are to receive 15% of their claims from the dock in the coming days.

According to a plan by the shipyard’s management, work would first be launched on completing the vessel for Algoma. Preparations are under way to continue, as soon as possible, work on building two more vessels – an oil and chemicals tanker and a vessel for the transport of cars, which is part of the bankruptcy estate of the ailing Uljanik shipyard from Pula.