Đuro Đaković Group Must Undergo Restructuring, Find Strategic Partner

Total Croatia News

ZAGREB, January 23, 2020 – Economy Minister Darko Horvat said on Thursday that the Đuro Đaković metal and mechanical engineering group, which is expected to receive today a loan in the amount of 150 million kuna, did have prospects but that it had to make a plan for its overhaul and find a strategic partner.

Asked about the Slavonski Brod-based company, which Prime Minister Andrej Plenković is expected to visit today, Horvat told reporters after a meeting of the inner cabinet that the company would use the 150 million kuna loan to pay a part of its financial obligations.

“… a part of the debt to suppliers will be paid, as will debts to the state, and the company will get an opportunity to buy goods and materials and carry out three existing contracts, which are expected to secure the company additional liquidity in the amount of 128 million kuna by the end of April,” Horvat said, adding that the company did have prospects but that it had to make a programme for its restructuring, which would have to be approved by the European Commission.

He stressed that the company had to find a strategic partner and that the strategic partnership would have to be closely monitored.

Asked how realistic finding a strategic partner was, Horvat said that he would not discuss it in public if he did not believe that it was possible.

The government last week decided to provide a state guarantee for a 300 million kuna loan for Đuro Đaković Group, Đuro Đaković Special Vehicles and Đuro Đaković Industrial Solutions.

A total of 150 million, to be secured as a loan from the Croatian Reconstruction and Development Bank or other commercial banks in the country and/or abroad, is intended to help unblock the group’s account, launch production and enable the execution of existing contracts, as well as the payment of liabilities to financial institutions and the state.

The remaining 150 million will be used as operating assets for production in Đuro Đaković Special Vehicles.

More business news can be found in the dedicated section.


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