Croatian court delays bankruptcy for troubled shipyard

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ZAGREB, July 4 (Xinhua) -- After many creditors withdrew distraint proceedings, the Commercial Court in Rijeka decided on Thursday to postpone the bankruptcy of Croatia's debt-ridden shipyard "3. Maj" until Aug. 1.

Seven days ago the shipyard's account was blocked for 156 million kuna (23.8 million U.S. dollars). After some of the creditors pulled back, the blockade now amounts to 86 million kuna (13.1 million U.S. dollars).

Judge of the Commercial Court in Rijeka Ljiljana Ugrin urged Croatian Electricity Industry and the Croatian government to engage in the process of revocation of the enforcement order, so that "3. Maj" could continue with unfinished shipbuilding contracts.

Assistant Minister of Economy Zvonimir Novak said at the hearing that the Croatian government would take a decision on intervention in a few days, in order to pay workers' salaries and continue with the building of the ships.

At this point, the shipyard in Rijeka must complete the construction of four vessels. The contracting parties, including Canada's Algoma, Sweden's Stena and Marflet Marine Internacional have shown interest in finding a way for resuming the work.

The shipyard of "3. Maj" was founded in 1892 and in 1956 it concluded the first export contract. It was a leading shipyard during Yugoslavia days until debt crisis began to emerge in 1990s. Enditem

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