Pre-bankruptcy proceedings opened for Brodosplit shipyard

NEWS 20.05.202221:03
N1/Vesela Šegvić

Pre-bankruptcy proceedings have been launched for the Brodosplit shipbuilding company, the Split-based dock confirmed to the Croatian state news agency Hina on Friday.

The application for the pre-bankruptcy procedure submitted by Brodosplit itself was received by Split Commercial Court on 27 April.

According to Brodosplit’s management, the company found itself in trouble financially because it could not withdraw in full two loans from the Russian VTB bank after it came under Western sanctions due to Russia’s invasion of Ukraine. The loans were to be spent for the completion of two vessels and other expenses.

Pre-bankrupcy proceedings have also been proposed for Brodosplit’s owner, the DIV group, because it owed 41.69 million kuna as at mid-April.

During March and April, Split Commercial Court held hearings regarding 11 companies within the Split Shipbuilding Industry.

The court has received dozens of proposals for bankruptcy proceedings against companies connected with the Split Shipbuilding Industry.

Proceedings have been launched to examine conditions for opening possible bankruptcy proceedings in another 25 companies in the group.