Brodosplit is not going bankrupt!

Funds for regular operations have been secured and the account has been unblocked, eliminating the grounds for initiating bankruptcy proceedings. Therefore, the hearing to determine bankruptcy grounds, scheduled for March 24, 2023, has been canceled.

Published: 24.03.2023.

- I gave personal guarantees and a personal promissory note to secure the money to unblock the account, so I can confirm that the block has been lifted. This removed the reason for starting the bankruptcy of Brodosplit, said Tomislav Debeljak, Chairman of the Board of Brodosplit.

The fact is that shipbuilding takes a long time, and shipyards receive money and earn money only when the ship is delivered. Until then, it is necessary to ensure the financing of the construction of the ship. Unfortunately, Croatia does not have secured financing for such long-term projects. The financing of sustainable projects in shipbuilding has not been resolved, as it has been for tourism and agriculture. For this reason, a creditor must be sought on the foreign market. Offers from three banks were received for financing the construction of the polar cruiser Janssonius. One from VTB, another from Credit Suisse, and the third from Deutsche Bank. VTB's offer was chosen because it was the most favorable. It would be good if the state recognized which shipyards can and are doing positive projects and ensured the monitoring of these projects, as they provide the most benefits.

On positive shipbuilding projects where the shipbuilder contracts the design and construction of the entire ship, as opposed to the business model where only the construction of parts of the ship is subcontracted, a much higher added value is achieved, resulting in higher productivity. This leads to much greater benefits for the state and GDP growth than in other sectors where Croatian companies are at the end of the value chain. Unfortunately, shipbuilding in Croatia has a negative perception among the public due to the lack of understanding of the industry's importance.

After the unblocking, the financing of the projects will be secured, and the money will be available soon. All permits for closing the transaction according to VTB have been obtained, and the signing of a contract with a renowned international fund is in progress. It is important to note that the money will not go to Russia but will end up in the German regulator. Once the funds are secured, the ships will be completed, and the workers will return to work. Regrettably, two excellent projects were lost, but along with the completion of the existing projects, a contract was signed with the company Storylines Residential Ships for the construction of a residential ship. The ship will be 232.5 meters long and will have 547 private residences. It will be named MV Narrative.

In the next four years, this will mean a greater number of employees than Brodosplit had before this crisis. Brodosplit has proven itself in the shipbuilding world and has many interesting projects ahead of it.


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