Adriatic city of Split's Commercial Court on Wednesday received a proposal for opening pre-bankruptcy proceedings in the Brodosplit shipyard, court president Franka Buzov told the Croatian state news agency Hina, adding that the proposal came from Brodosplit.

Brodosplit 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 HRK 41.69 million as at mid-April.

Buzov said bankruptcy proceedings had been proposed for Brodosplit’s other companies.