The accounts of the Djuro Djakovic metal and mechanical engineering group were blocked on Wednesdayand the management started negotiations with creditors on the removal of the blockade, the Slavonski Brod-based group said in a press release.

On Wednesday afternoon, the group said that management board chairman Marko Bogdanovic tendered his resignation.

Bogdanovic says in an explanation of his resignation that the group is currently in an unenviable situation due to two crucial issues: inability to financially follow the production of wagons for export and inadequacy of the group’s own capital.

The company’s workers have been on strike since Thursday because they have not received wages for September. Aside from that, they also demand the resignation of the Board, considering it incapable of running the company.

Minister: Group needs restructuring

Economy Minister Darko Horvat said on Wednesday morning the Djuro Djakovic group needed restructuring and a strategic partner.

“We realise that, as in other ailing companies, the old philosophy of doing business is simply not possible. We helped Djuro Djakovic a year ago by giving a loan which is slowly coming due for repayment. We are looking for a model to pay the one late salary, but without serious restructuring and a serious strategic partner, Djuro Djakovic won’t be able to continue at the pace it did when it was created and when it was a recognisable brand, not just in Europe but worldwide,” Horvat told reporters.

Asked about the possibility of US company BAE Systems entering the group, he said he did not have such information. Jutarnji List daily said today BAE was considering opening a maintenance centre for Bradely armoured vehicles in Slavonski Brod.

Horvat said he asked management to submit an analysis of the situation in Djuro Djakovic in the next ten days, after which the company’s receivables and liabilities would be known.