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.
