ZAGREB, January 29, 2019 - The President of the Brodosplit shipyard Management Board, Tomislav Debeljak, said on Monday that following due diligence, his DIV company and its partners had submitted a bid for the restructure of the Uljanik Group and underlined that his company had references in the form of equity of 1.7 billion kuna and a debt of 296 million kuna.

"We conducted due diligence in Uljanik and submitted a bid for the restructuring programme," Debeljak told reporters at the Brodosplit dock where the start of construction of a polar cruise ship was launched, for the Quark Expeditions company which is part of the Travelopia Group.

Debeljak told reporters that he could not disclose the financial details of the bid however he underlined that DIV had a partnership with the Italian Fincantieri Group and "large and respectable banks who have sent letters of intent."

"As far as we are concerned as a company, the DIV Group has an equity of 1.7 billion kuna and a debt of just 296 million kuna. That means that our debt is far less than that of some large, quality companies and even some insurance companies. We have a truly good financial position," he said.

He added that the Brodosplit dock has shown that shipbuilding in Croatia can be positive and of good quality. He added that Brodosplit is currently preparing a study that will show what positive shipbuilding means and what negative shipbuilding is, adding that for the past three years, the Split-based dock has had positive business results.

"We have shown that we have references in the examples of the defunct Tvik company in Knin, the defunct Švrljiga factory in Serbia that we bought and, let's say the once defunct Brodosplit whose equity was deeply in the red and have shown what we can and intend to do in Uljanik or anywhere else in some other shipyard in Europe. We have the will, know-how, desire and management capacities to expand," Debeljak concluded.

In other Uljanik related news, deputy leader of the Adriatic Union, Boris Cerovac, said on Monday that news that the Commercial Court had received an application from the FINA financial agency requesting bankruptcy proceedings against the Uljanik shipyard joint-stock company was to be expected.

FINA notes that as of 21 January the Uljanik shipyard has unsettled payments that are more than 120 days overdue and amount to a total of 75.8 million kuna.

"That was absolutely to be expected because we knew that January 21 was the 120th day that the company's accounts were blocked," Cerovac told HINA. He expects the pre-bankruptcy trustee to determine the true situation and that it isn't necessary to launch bankruptcy proceedings if the restructuring programme proposed by a new strategic partner will "hold water."

FINA notes that Uljanik has 1,400 employees and about twenty accounts and term deposits in five commercial banks and that FINA has other information concerning the company's assets. The news of the bankruptcy proceedings comes after Uljanik's management board reported that a client from Luxembourg, CLdN, had unilaterally withdrawn from a contract for the construction of a ship.

Prior to that Uljanik has unilaterally cancelled a contract for another client and the latest cancellation is just another in this crisis situation in Uljanik.

Cerovac added that the union doesn't have any official information concerning a potential strategic partner and who has submitted bids for the company.

More news on the Uljanik shipyard can be found in the Business section.

ZAGREB, January 27, 2019 - Representatives of trade unions active in the Pula-based Uljanik shipbuilding group said on Saturday that their two-hour meeting with the shipyard's management and the manager of the Brodosplit shipbuilding company, Tomislav Debeljak, had ended without any concrete results, repeating that unions wanted Uljanik to continue with shipbuilding activity and keep as many workers as possible.

"We still don't have information on the potential investors that have given bids for the takeover, so we can only make guesses or accept information published by some media outlets," unionist Boris Cerovac told Hina.

Cerovac added that unions did not want to favour any of the potential investors and wanted to talk to every investor that was interested in taking over Uljanik. "It is important to us - and we have made that clear to Mr Debeljak - that shipbuilding is maintained instead of launching real estate business, and we want the investor to keep as many workers as possible. We want to ensure that with a social agreement and expect the potential partner to accept it," said Cerovac.

The management of the Pula shipbuilding group on Saturday continued analysing bids submitted for the takeover of the shipyard, and after meeting with Debeljak and unionists, the management met with the directors of all companies making up the Uljanik Group.

According to unofficial sources, apart from Brodosplit, which has submitted a bid for Uljanik's takeover in partnership with Italy's Fincantieri, offers have also been submitted by the Scenic group from Australia and the Maritime Institute from Split.

Uljanik CEO Emil Bulić said on Friday that a total of six companies had done an in-depth analysis of the shipyard's operations.

The deadline for the submission of binding offers for Uljanik's takeover expired at 8 pm on Friday.

The shipyard's management is expected to present the bids to Economy Minister Darko Horvat on Monday.

More news on the Uljanik shipyard can be found in the Business section.

ZAGREB, January 25 (Hina) - The Uljanik Group Board chair, Emil Bulić, said on Friday afternoon that a total of six companies visited the group's data room which was opened for due diligence until 24 January, and a deadline for their prospective bids expires on Friday evening.

Upon the expiry of the deadline for submission of bids for a strategic partnership on 8pm it will be known which of the interested companies have offered their bids, Bulić said.

He said that based on the current developments and bids received, he did not want to give any false hope. Let us wait until 8 pm to see how serious these bids are, he said.

Asked whether the access to the data room was denied to a previous strategic partner, businessman Danko Končar, Bulić said that no one was denied access.

The supervisory board is due to convene on Friday evening and it is supposed to consider the bids in the coming days.

It is up to the management and the supervisory board to select the future partner, and the communication with the economy ministry is intensive.

Bulić said that they would insist that the Pula-based Uljanik dock and the Rijeka-based 3. Maj dock should remain together in the package offered to strategic partners.

More news on the Croatian shipbuilding industry can be found in the Business section.

ZAGREB, January 23, 2019 - Economy Minister Darko Horvat said before a cabinet meeting on Wednesday that the government expected at least two offers from strategic partners for the Uljanik Group by Friday.

"Friday will be the day during which we will receive at least two offers. How serious these offers will be... We will give the opportunity to the management to open and analyse the offers on Saturday and present them to the Economy Ministry at 11 am Monday," Horvat said, adding that a meeting with unionists and the management would be held at the ministry on Tuesday.

Asked if that meant that by the end of next week the public would know the name of the new owner of the Uljanik Group, Horvat said no. "I expect the text of these offers to be very complicated. The management will most definitely need time to analyse them," he added.

He also said the government had not set up a deadline, adding that the public would be updated by the management on Friday or Saturday.

Horvat said investors were interested in Croatia's shipbuilding industry, but declined to talk details.

Due to great interest from potential investors, the deadline for due diligence in the Uljanik dock has been extended from January 18 to January 24, while the deadline for the submission of strategic partnership bids remained unchanged -- 2000 hrs, January 25.

More news on the Uljanik shipyard can be found in the Business section.

ZAGREB, January 18, 2019 - The Uljanik Group's board chairman Emil Bulić told the press on Thursday that the reason for the prolongation of an in-depth analysis of the Pula-based shipyard until January 24 was the great interest shown by potential investors.

The Uljanik shipyard said today that the due diligence period had been extended until January 24 following additional interest shown by potential investors.

"Data room can be accessed on a working day from 0800-1800 hrs and also on Saturday 19th January 2019 from 0900-1300 hrs. Deadline for submitting the Offers for strategic partnership remains unchanged i.e. by 25th January 2019 until 2000 hrs (CET)," reads a press release issued by the group on the Zagreb Stock Exchange (ZSE).

Economy Minister Darko Horvat said last week that intensive talks were under way with several partners and that it would be clear by January 25 whether they would eventually make a financial offer. He added then that "two serious partners" were conducting due diligence.

When asked by the press to identify the potential investors, Bulić said today that he could not give a more specific answer, citing confidentiality.

Due to the sensitivity of the whole process, all interested parties who visited the data room signed a confidentiality statement.

Bulić said that representatives of five potential investors had to date entered the data room of the Uljanik Group that includes the shipyard in Pula and one more dock, 3.Maj in Rijeka. He declined to comment on local media speculations that executives of a large Chinese shipyard and several small docks in Germany were among those possible investors.

"Croatia's largest shipbuilder Uljanik, which is trying to attract investors to stay afloat, extended a due diligence process until late next week after drawing the interest of potential strategic partners," Reuters reported today.

"Local media reported that there were potential investors from Ukraine, Italy, Germany, China and Australia for Uljanik, which is 25 percent state-owned," according to Reuters.

The news agency says that the Uljanik Group "has been on the brink of bankruptcy after facing liquidity problems over the past 12 months, which led to two strikes by its workers in the second half of last year over unpaid wages."

In January last year, the Croatian government helped it stay afloat with state guarantees for a loan worth 96 million euro (111 million dollars), while previous governments guaranteed other loans extended to Uljanik, which is now putting pressure on public finances. Under European Union state aid rules, no further state guarantees or direct payments from the budget are allowed, Reuters says.

More news on the Uljanik shipyard can be found in the Business section.

ZAGREB, January 17, 2019 - The Pula-based Uljanik shipyard said on Thursday that the due diligence period had been extended until January 24 following additional interest shown by potential investors.

The data room is open from 8am to 6pm on weekdays and from 9am to 1pm on Saturday, January 19.

The company recalled that the deadline for submission of bids for a strategic partnership remained 8pm on January 25.

Economy Minister Darko Horvat said last week that intensive talks were under way with several partners and that it would be clear by January 25 whether they would eventually make a financial offer. He added that "two serious partners" were conducting due diligence.

Horvat said in parliament on Thursday morning that a third potential partner had shown interest on Wednesday and that he was certain that one more would express its interest next week.

More news on the Uljanik shipyard can be found in the Business section.

ZAGREB, January 16, 2019 - Economy Minister Darko Horvat during Question Time in Parliament on Wednesday dismissed criticism by MP Tulio Demetlika of the Istrian Democratic Party (IDS), who said that Horvat lied that he had a strategic partner for Croatian shipyards, stressing that he was speaking about potential partners with whom talks were underway.

"I have never said we had a strategic partner for Croatian shipyards, I said we have potential partners with whom we are talking," Horvat told Demetlika, who also asked Horvat why he asked local government units to break the law and pay salaries to Uljanik workers.

"Why don't you say it clearly? Do you or do you not have a strategic partner for Uljanik," Demetlika said, warning that uncertainty continues for the workers of Uljanik and 3. Maj shipyards, which lost more than 1,300 workers in less than a year.

The minister responded that if one were to calculate the amounts the government had injected into the docks in Rijeka and Pula in 2018, as assistance to workers, they would arrive at nearly one billion kuna. "You tell me, where is the local government in all of this? And take into account that the local government created the management in the two docks," the minister said.

Dissatisfied with the "unclear position" of the government regarding the survival of the shipbuilding industry, Demetlika insisted that the government is the only one that can do something.

More news on the Croatian shipyards  can be found in the Business section.

ZAGREB, January 13, 2019 - Economy Minister Darko Horvat told reporters in Krapina on Sunday that the government was intensively talking to several partners about the Uljanik shipyard, that the public would receive information on January 18 and that whether or not a financial offer would follow would be known on January 25.

Asked about negotiations with potential investors in the Uljanik dock, the minister said that as of yet nobody had made an offer, adding however that "a data room" had been opened and that two partners were conducting due diligence.

"We expect another serious partner to join the negotiations in a week. Now we are resuming talks with everyone we see as a potential partner," Horvat said.

He declined to speak of the names of potential investors adding that the public would be informed of everything on 18 January.

Whether or not the talks will result in a concrete financial offer will be known later, Horvat said.

He also said that the government would help companies that are facing difficulties but not unconditionally. "Without a clear restructuring plant without clear prospects, I think it is crazy to waste tax payers money and the state budget on companies with no prospects, market or quality products.

More news on the Uljanik shipyard can be found in the Business section

ZAGREB, January 4, 2019 - Economy Minister Darko Horvat and Uljanik shipbuilding group chairman of the board Emil Bulić said on Friday two serious partners were interested in the group and that they were conducting due diligence, with Horvat hopeful that two more partners would express interest by January 25.

Horvat said after a three-hour meeting with the management of Uljanik d.d. that he was optimistic, although he realised an official receiver was appointed today to examine the situation in the 3. Maj dock and submit a report to a judge within 15 days, and that a similar situation awaited the Uljanik dock on January 26. Both docks are part of the Uljanik Group.

Horvat said Italy's Fincantieri and Croatia's DIV, acting together, and Australia's Scenic group, which is already building ships in Uljanik, were currently checking data on the state of affairs in the Uljanik and 3. Maj docks. He hopes that at least one or two concrete financial offers for a strategic partnership within the Uljanik Group will be made by January 25.

He said the group's management, the Economy Ministry and everyone involved were trying to find a solution to prevent 3. Maj from going into bankruptcy, adding that an attempt would be made to prevent Uljanik's bankruptcy too.

Asked by reporters if it was realistic to expect temporary financing until the restructuring programme began, Horvat said 150 million kuna, which would revive both docks, was not too much for Fincantieri-DIV and Scenic. "We'll see after they collect all the relevant information and express their interest through a serious financial offer."

Horvat said a bankruptcy procedure would not mean the closure of the shipyards. He added that he did not want to talk about bankruptcy yet because the two current partners and the two others he expected to access the data room by January 18 could pay 3. Maj's liabilities, which amount of 150 million kuna.

Asked if 3. Maj could be separated from the Uljanik Group, Horvat said both current partners were interested in the group. He said potential partners from Ukraine had informed the Economy Ministry they were interested in both docks, and that he expected partners from China to express interest too.

Asked if Scenic was interested as a potential strategic partner or just checking if it could build ships, Horvat said Scenic could become a part-owner and that its representatives would arrive in Croatia on Wednesday.

Responding to a question, he said that since DIV and Fincantieri were acting together, he was sure they were a financially capable strategic partner.

Asked if he had a plan in case there were no strategic partnership offers, he said that, in that event, "the prospects of both shipyards depends only on them."

Uljanik CEO Emil Bulić said after the meeting with Horvat that intensive talks with potential strategic partners were in progress. "In the past few weeks we have been dedicated to intensive talks with potential strategic partners. We have opened a data room, two very interested bidders have accessed the data room, and intensive activities are taking place on a daily basis so that we can make conclusions as soon as possible on binding offers, which are expected by January 25," Bulić said.

At the same time, negotiations are also under way with shipowners so that the construction of their vessels could resume as soon as possible and the stage of completion of the vessels could be increased.

Asked how he would avoid a bankruptcy and how much money he had at his disposal, Bulić said that obligations were huge, while the deadlines for data room use and bid submission were short. "Because our employees and creditors are financially exhausted, we expect shortly a reaction from both potential strategic partners and partners in restructuring, and we expect the state to be that, to jointly secure temporary financing until the adoption of the restructuring programme. After the completion of the procedure, we expect a binding offer and partnership in drafting the restructuring programme. It is realistic to expect the implementation of the programme to begin no sooner than two to three months from today. In the meantime, we are seeking a way to ensure temporary financing, which is key, until the launch of the restructuring programme," Bulić said.

He said that they had also contacted several other potential partners, but they had not confirmed their interest yet. Asked if he thought there was enough time, Bulić said: "There's very little time, but we are doing all we can. This is a period of uncertainty ... but the situation will be much clearer after January 25."

More news on the Uljanik shipyard can be found in our Business section.

ZAGREB, January 4, 2019 - The Rijeka-based Commercial Court on Friday launched procedure to establish the prerequisites for the approval of official receivership for 3.Maj Rijeka shipyard and appointed Zdravko Čupković temporary official receiver.

The next hearing at which a final decision on official receivership will be made is set for 6 February.

A week ago, the Financial Agency submitted a request with the local commercial court for official receivership proceedings for the 3.Maj dock, which is part of the ailing Uljanik Group.

The request was submitted after the dock's account was blocked for 120 days due to overdue liabilities higher than 72 million kuna.

Local unionists have informed the public that 3.Maj shipyard owes about 150 million kuna to suppliers and subcontractors, whereas the Uljanik Gorup is supposed to pay back to the Rijeka shipyard 600 million kuna of the loan 3.Maj gave to the Pula-based group. The sum includes also interest rate.

This past Monday, 3. Maj shareholders held an extraordinary meeting to amend the company's rule book whereby a possibility of appointing up to five members of the management board was reintroduced.

In late December, the supervisory board of the Uljanik shipyard decided to terminate the strategic partnership with the Kermas Energija company of businessman Danko Končar and to seek another partner who will be willing to invest in the group's restructuring.

Uljanik invited all interested investors to express their interest in a strategic partnership and recapitalisation in accordance with decisions reached at shareholders' meetings of February 16 and October 16 this year. A data room is being opened for all prospective strategic partners.

More news on Croatia’s troubled shipbuilding industry can be found in our Business section.