Jadroplov, a Croatian state-owned shipping company, has started a comprehensive restructuring project aimed at reducing costs, focusing on its core business and alleviating financial pressure stemming from high indebtedness. The purpose of the plan is to enable Jadroplov to achieve long-term sustainability with minimal state intervention, while retaining six of its existing vessels.
The State is involved in the restructuring through the provision of a subsidy and two State guarantees for bank loans, with the total support amounting to approximately EUR 14.2 million. Jadroplov will contribute to the restructuring with EUR 19.5 million of its own investment, in particular by securing financing from private investors and through assets sales.
As Jadroplov is a state-owned company, the restructuring program was notified to the European Commission to examine it under State aid rules. The EC concluded that it would indeed enable Jadroplov to become more viable without continued State support.