ZAGREB, May 2, 2018 - The European Commission has green-lighted a programme of restructuring for the Split-based Jadroplov shipping company, and concluded that the programme complied with the European Union's state aide rules.
The Commission cleared 105.6 million kuna in restructuring aid for Jadroplov. The EC has found Croatian plans for restructuring the shipping company Jadroplov to be in line with EU state aid rules.
"Jadroplov, which is based in Split and suffered from reduced volumes and falling prices in worldwide trade of dry bulk cargo has started carrying out a comprehensive restructuring program aimed at reducing costs, focusing on core business and alleviating the financial pressure stemming from high-indebtedness," the Commission stated on Wednesday.
"Croatia is supporting the process with a subsidy and two state guarantees on bank loans for a total state support amount of 105.6 million kuna (around 14.2 million euro). The Commission found that Jadroplov's restructuring plan will enable the company to become viable in the long term without continued state support.
"Jadroplov will make a significant own contribution to the cost of restructuring of 144.9 million kuna (around 19.5 million euro), in particular by securing financing from the private market and through asset sales. Moreover, the assets sale contributes to reducing the potential distortions of competition brought about by the restructuring aid. The Commission therefore concluded that the restructuring plan was in line with EU state aid rules, in particular the 2014 Rescue and Restructuring Guidelines."
Jadroplov was founded in 1947. After transformation of socially owned companies in 1993, it became a joint stock company. The company's core business is the international maritime transport of goods with its own ships, managing crews and technical maintenance of ships.
