Pre-Bankruptcy Proceedings Opened for Brodosplit Shipyard

By 20 May 2022
Pre-Bankruptcy Proceedings Opened for Brodosplit Shipyard
Photo: Ivo Cagalj/PIXSELL

ZAGREB, 20 May 2022 - Pre-bankruptcy proceedings have been launched for the Brodosplit shipbuilding company, the Split-based dock confirmed to 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-bankruptcy proceedings have also been proposed for Brodosplit's owner, the DIV group because it owed HRK 41.69 million as of 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.

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