Proposed Pre-bankruptcy for Div Group Due to 41.69 Million Kuna Debt

The Commercial Court in Zagreb has received a proposal for the opening of pre-bankruptcy proceedings for Div Group, the parent company of entrepreneur Tomislav Debeljak, citing recorded unpaid payment bases of 41.69 million kuna established in mid-April.

The proposal for the opening of pre-bankruptcy proceedings was submitted by the debtor itself through an authorized law firm, and the submitted documentation particularly emphasizes that Div Group is the parent company of a group that employs a total of 4,000 workers, of which 862 workers are directly employed by Debeljak’s parent company.

– In this sense, the debtor is currently the largest employer in the city of Knin, employing 15 percent of the total working-age population of the city. In addition, the debtor owns the largest standard screw factory in Europe, which markets its products to the demanding European market, especially the EU market, as well as to the markets of North Africa, the Middle East, and America – states the proposal.

Div Group, in addition to being specialized in the design, production, and trade of fasteners and other machine parts and metal products, directly influences the performance of specific activities through affiliated companies in the group, including shipbuilding, which undoubtedly represents a strategically important industry for the Republic of Croatia, it is highlighted in the submission.

– In light of the above, considering the specificity of the situation that has led to the debtor’s imminent inability to pay, the need to preserve jobs, and the importance of the debtor’s business and its affiliated companies for the overall economy, the debtor proposes that the court take the case into consideration as soon as possible and issue a decision to open pre-bankruptcy proceedings – it is stated in the proposal for the opening of pre-bankruptcy proceedings.

It is also concluded that Div Group will submit a restructuring plan within the legally prescribed period from the date of the finality of the decision on established and disputed claims, i.e., from the date of delivery of the decision of the second-instance court on the appeal against the decision on established and disputed claims.

The account of Div Group was blocked in mid-April, and the reason given by the company was financial assistance to Brodosplit due to problems refinancing a loan from the Russian VTB and actions by suppliers following the announcement of those problems.

Due to sanctions imposed on Russian banks, the loan from VTB was not fully drawn, so Div had to assist Brodosplit with its own funds, said sources from Div Group to Hina after the account was blocked.

Brodosplit previously reported that it had 60 million euros blocked due to financing the construction of two ships with funds from VTB Europe, a Russian-owned bank based in Frankfurt.