One of Croatia’s largest shipyards, Uljanik, and the owner of Kermas Energy Mr Danko Končar, whose offer for restructuring of the Pula giant was accepted by the Minsitry of Economy two weeks ago, are about to submit the first draft of a restructuring proposal to the Ministry of Economy. Uljanik’s assembly requested that any offers for restructuring include capital increase between Kn 182 to Kn 302 million. It is unclear just how much Mr Končar’s company proposes to invest.

No details are available but Mr Končar stressed that the European Commission must approve the plan of restructuring. He also warned that this process is about to get much more complicated because the buyers are already cancelling their orders. So far, five ships have been cancelled out of 17 orders Uljanik currently holds.

Mr Končar’s main aim is to avoid activation of government guarantees on any of the remaining contracts. But so far he refused to be drawn on whether he thinks the company will manage that. He also said it is still unclear what percentage of Uljanik Kermas Energy will hold after restructuring, because any decision on recapitalization can only be taken once the restructuring plan is accepted by all.