Croatian DIV files pre-bankruptcy for 41.7 million kuna (5.5 million euros) debt – report

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ZAGREB (Croatia), April 26 (SeeNews) – Croatian private group DIV has initiated pre-bankruptcy proceedings with the Zagreb Commercial Court over an unpaid debt of 41.7 million kuna (5.9 million dollars/5.5 million euros), local media reported.

Given the importance of the group and its subsidiaries for the national economy, the DIV asked the court to open a file as soon as possible and to take a decision to launch pre-bankruptcy proceedings, reported on Monday the public channel HRT.

The DIV Group consists of over 55 companies involved in fastener manufacturing, shipbuilding, steel structure solutions, diesel and LNG engine manufacturing, casting, rail infrastructure and mechanical parts design on measure, with more than 4,000 employees in 30 countries. The group’s parent company has 862 employees.

The group owns the Croatian shipyard Brodosplit. According to previous press reports, DIV’s bank account was blocked in mid-April after the group provided financial support to Brodosplit.

Due to the sanctions imposed on some Russian banks following the Russian invasion of Ukraine, Brodosplit’s access to 60 million euros in funding from VTB Europe, a Frankfurt-based Russian bank, for the construction of two ships , has been locked. Brodosplit was unable to withdraw a full loan from VTB Europe and DIV had to help Brodosplit with its own financing.

Thus, DIV invested 60 million euros of equity in the two vessels, instead of 30 million euros as planned, depleting it financially, Croatian news agency HINA said quoting DIV earlier this month.

(1= 7.561 Croatian kuna)

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