The creditors of the insolvent shipyard Damen Mangalia, following a meeting on March 25, decided to defer for at least seven days the meeting dedicated to making a final decision on the reorganisation plan proposed by the insolvency firm CITR. However, the main creditor (and minority shareholder) Damen Holding implied that endorsing the reorganisation plan, which would keep the shipyard on the market, depends on amendments that would guarantee full recovery of its claims.

The creditors' meeting took place while the company’s employees were holding a rally, as they had not received their wages for the past three months.

"We intend to reorganise the company by identifying an investor," Paul Dieter Cîrlănaru, general director of CITR, told Europa Libera Romania.

The company’s  shareholder and main creditor, which triggered the company’s insolvency, Damen Holding (49%), announced that it “is ready to support the shipyard in the future, but not without recovering its existing receivables.” However, in the same statement cited by Economica.net, it argued that the reorganisation plan as drafted by CITR does not guarantee the recovery of the claims - effectively implying a negative vote for the plan under this form.

“[...] The proposed plan completely excludes the repayment of significant investments and loans granted by Damen Holding to the shipyard, both currently and in the future,” the statement reads. 

“Unfortunately, in its current form, the reorganisation plan does not meet these criteria, which is why Damen cannot support it,” the Dutch shareholder/creditor stated.

Entering bankruptcy after creditors' failure to endorse the restructuring plan involves the liquidation and sale of the company's assets to cover debts to creditors. The consequences of this decision are serious for employees. With the company's deregistration, the individual employment contracts of employees will cease, and they will lose their jobs.

Damen said that it “remains open to dialogue and is available to collaborate with all stakeholders to identify and analyse alternative solutions.”

In 2024, after scrapping a management agreement with the Romanian state (which holds 51% of the shipyard), Damen requested the shipyard's insolvency, six years after they took over a 49% stake. Thus, on June 19, 2024, the Constanţa Court opened the insolvency procedure of the Damen Mangalia shipyard. The request for the opening of the insolvency procedure was filed in court by Damen Holding BV, which appears as a creditor.

According to the Reorganisation Plan consulted by Europa Libera Romania, the total debts of the Damen Mangalia Shipyard are RON 1.086 billion (EUR 213 million), to which is added another RON 824 million (EUR 162 million), contested in court.

Of the RON 1 billion included in the creditors' table, Damen would receive RON 747 million, the state - RON 29 million, and the employees, RON 21 million. Over RON 300 million (EUR 60 million) are debts to various companies.

iulian@romania-insider.com

(Photo source: CITR)