The Uljanik Plovidba shipping company has applied for pre-bankruptcy proceedings to be launched after a foreign banking syndicate broke off negotiations and retained in Malaysia an Uljanik ship as collateral for due debts, the Pula-based company said on Monday.

“The management and steering boards on 29 September 2019 adopted a decision to have pre-bankruptcy proceedings launched, along with a restructuring plan based on and in accordance with agreements reached so far regarding a possible settlement with existing creditors,” the company said in a press release.

The company’s management said that despite a high level of agreement regarding settlements with local and foreign creditors, a banking syndicate led by Credit Suisse had decided to unilaterally break off negotiations and had retained one of its ships in Malaysia as collateral for due debts.

The management added that a new foreign creditor had already signed an indicative offer to reschedule the loan by the foreign banking syndicate and announced that a binding offer for loan rescheduling would be delivered by October 4.

Uljanik Plovidba underscored that the proposed restructuring plan did not foresee any write-offs of claims from workers, seamen or suppliers and that is purpose was to ensure conditions to complete negotiations and come to a settlement with creditors so that the company can continue to do business.