ZAGREB, August 24, 2018 – Economy Minister Darko Horvat said on Thursday evening that neither Danko Končar, the owner of the Kermas Gorup that is perceived as a potential strategic partner for the Uljanik Group, nor the management of the Pula-based ailing ship construction and repair group, were offering for the time being any solution how to ensure funds for the payment of the wages in arrears.
“A model which is currently proposed by Mr. Končar as a strategic partner is not the assistance in the form of cash for Uljanik, and this proposal does not include any sort of a loan that could serve as the source for the payment of the salaries in the shipyards Uljanik and 3. Maj,” the minister said in Zagreb after he held separate meetings with the Uljanik Group management chairman, Gianni Rossanda, and businessman Končar.
Horvat went on to say that the management did not either offer any solution to solve the current difficulties until the launch of the process of the overhaul of the dock, which might have envisaged a model how to pay the wages in arrears.
According to Horvat, businessman Končar is currently proposing his vision for the development of the shipbuilding activities in the docks – Uljanik and 3. Maj – however, at present he “does not have any and does not want to provide a financial arrangement which could ensure necessary funds for workers’ salaries before the verification of the plan for restructuring.”
Asked by the press if going into receivership could be an option for the Uljanik Group, the minister answered in the affirmative and added that pre-bankruptcy proceedings could also be considered.
He elaborated that one of the possibilities discussed today was for the management to launch the blockade of the account on behalf of each employee whereby in the next three months a minimum salary will be paid from the state budget to workers during the blockade.
Furthermore, if receivership with a plan for restructuring is launched, the state budget could ensure an additional three monthly salaries for the Uljanik Group.
In this scenario with the ensured salaries for six months, a Norwegian client that has ordered a ship whose construction could be soon finished is ready to finance the finalisation of that project in the Uljanik Group’s docks, and this can offset 124 million kuna in collateral from the state budget which has been provided to Uljanik for a loan taken to wrap up the construction of that vessel, according to Horvat’s explanation.
Horvat went on to say that at present the government did not want “to pump in a vast amount of money”, until a clear vision about the future of the group.
The minister said that it was within the remit of the management to choose a strategic partner. He called on the striking workers to be patient, reassuring them that the government was intensively dealing with this issue.
