Second auction for bankrupt Romanian shipyard Mangalia fails

The second auction for the sale of Romania’s bankrupt Mangalia shipyard attracted no bidders on July 29, with the EUR 184 million starting price maintained for a third auction scheduled for August 28, G4media.ro reported.

A week ago, Irineu Darău, the minister of economy, declared at the presentation of the half-year activity report that this year the German group Rheinmetall, which won a EUR 920 million contract under SAFE for four military ships, will begin the revitalisation of Mangalia shipyard by starting this shipbuilding project.

The first auction for the shipyard, held on June 29, also failed to attract bidders. Despite the lack of interest, creditors decided to retain the same starting price, excluding VAT, under a plan providing for at least six auctions at the market-value price.

The shipyard’s employees have meanwhile been made redundant following the company’s bankruptcy.

The sale, organised by judicial liquidator CITR, covers the shipyard’s assets en bloc, as a single package comprising the real estate and movable assets required to continue operations. Receivables and shareholdings are excluded from the transaction.

"The functional asset is represented by a set of assets that allows the continuation of the business, including land, buildings, installations, equipment, inventory items, stocks, as well as accommodation units," CITR said in its sale announcement.

The Creditors’ Meeting decided that at least six auctions would be held, each at the market value of the assets. The starting price is more than EUR 100 million above the shipyard’s liquidation value.

The Mangalia shipyard, one of Romania’s largest shipbuilding facilities, entered insolvency proceedings after years of financial difficulties. The sale process is intended to transfer the operating assets as a package, potentially allowing the shipyard’s activities to resume under a new owner.

(Photo source: Inquam Photos/Daniel Stoenciu)