February the 21st, 2023 - Can the constantly troubled Split shipyard Brodosplit be saved from its apparent destiny of bankruptcy? The company has been engulfed in turbulent times for a considerable amount of time now, as has the entire Croatian shipbuilding industry.
As Suzana Varosanec/Poslovni Dnevnik writes, for Brodogradjevna industrija Split (Brodosplit), which, through its daughter company is currently participating in the largest military technology fair in Abu Dhabi, "D-Day" is marked out on the calendar as March the 24th, 2023. This is the looming day on which the Commercial Court in Split will finally convene a decisive hearing on the matter of bankruptcy.
Along with the statement on the proposal to open bankruptcy proceedings against this debtor, the question of whether all of the proper prerequisites for bankruptcy are there will also be discussed.
On the part of Brodosplit, legal representatives Tomislav Debeljak and Tomislav Corak have been invited, meaning that the future of a company that has been struggling to keep its head above water for a while now will soon finally be clarified. As far as the blockade is concerned, in mid-February, the massive sum amounted to around 23 million euros, so as the last olive branch of salvation for Brodosplit, hopes are currently being placed in an American hedge fund that allegedly visited the shipyard several times in the past.
The fund is familiar with Brodosplit's overall capacities, claim the insiders, but the decision of the fund managers, more specifically whether they are ready to lend money to the Split shipyard or not, remains completely unknown as yet.
According to the bill of costs that is burdening the company, there is a loan worth about 100 million euros which would remove Brodosplit's blockade, pay off the debts to its creditors and finish numerous already started projects. It would also close the loan owed to a Russian creditor in the total amount of about 57 million euros. The owner has assured that the operation will take place by the said hearing, and the only other option for Brodosplit is unfortunately bankruptcy.
The aforementioned hearing was convened after the appeals court rejected Brodosplit's appeal as unfounded, while at the same time confirming the decision of the first-instance court from back in November 2022.
This is otherwise a decision that rejected the debtor's withdrawal of the proposal for opening pre-bankruptcy proceedings as untimely, while the debtor's withdrawal of the proposal for opening bankruptcy was rejected as inadmissible.
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