Shipyard’s Fate Hangs in Balance as Creditors Debate Reorganisation Plan
The future of the Damen Mangalia shipyard remains uncertain as creditors convened to discuss a proposed reorganisation plan. A crucial meeting, initially scheduled for March 25th, saw a postponement of at least seven days, delaying a final decision on the path forward. The plan, put forth by insolvency firm CITR, aims to keep the shipyard operational. However, a key obstacle has emerged: Damen Holding, the main creditor and a minority shareholder, has indicated that its endorsement hinges on amendments that would ensure the full recovery of its substantial claims.
The creditors’ gathering occurred against a backdrop of employee unrest. Workers at the shipyard have been protesting, having gone without receiving their wages for the past three months, highlighting the immediate human cost of the ongoing financial turmoil.
Navigating the Insolvency Maze
Paul Dieter Cîrlănaru, general director of CITR, outlined the firm’s strategy. “We intend to reorganise the company by identifying an investor,” he stated, emphasizing the goal of finding a new partner to steer the shipyard towards stability.
Damen Holding, which holds a 49% stake and is the primary creditor that initiated the insolvency proceedings, has publicly expressed its willingness to support the shipyard’s future. However, this support is explicitly conditional. The company has made it clear that it will not commit to future involvement without first recovering its existing receivables. In a statement, Damen Holding argued that the reorganisation plan, as currently drafted by CITR, fails to provide this crucial guarantee. This position strongly suggests a potential rejection of the plan in its present form.
The core of Damen Holding’s objection lies in the proposed repayment structure. The company asserts that the plan “completely excludes the repayment of significant investments and loans granted by Damen Holding to the shipyard, both currently and in the future.” This exclusion is a fundamental point of contention, leading Damen to conclude that, “Unfortunately, in its current form, the reorganisation plan does not meet these criteria, which is why Damen cannot support it.”
The Grim Alternative: Liquidation and Job Losses
The consequences of creditors failing to endorse a restructuring plan are stark. Should the reorganisation proposal be rejected, the shipyard faces the prospect of bankruptcy, leading to the liquidation and sale of its assets. This process is designed to cover outstanding debts owed to creditors.
The implications for the shipyard’s workforce are particularly severe. The deregistration of the company would result in the automatic termination of individual employment contracts. Consequently, employees would lose their jobs, adding a significant human dimension to the financial crisis.
Despite the challenges, Damen has stated its commitment to finding a resolution. The company has indicated that it “remains open to dialogue and is available to collaborate with all stakeholders to identify and analyse alternative solutions.”
A Timeline of Financial Strain
The current predicament traces back to 2024. After a management agreement with the Romanian state, which holds the majority 51% ownership, was terminated, Damen initiated action. Six years after acquiring its stake, Damen formally requested the shipyard’s insolvency. This led to the Constanţa Court officially opening the insolvency procedure for Damen Mangalia shipyard on June 19, 2024. The filing for insolvency was submitted by Damen Holding BV, acting in its capacity as a creditor.
The Scale of the Debt
An examination of the reorganisation plan, as reviewed by Europa Libera Romania, reveals the substantial financial liabilities facing Damen Mangalia. The total debts are reported to be RON 1.086 billion (approximately EUR 213 million). Adding to this burden is a further RON 824 million (approximately EUR 162 million) in debts that are currently being contested in court.
Within the RON 1 billion of debts recognised on the creditors’ table, Damen Holding is slated to receive the largest portion, amounting to RON 747 million. The Romanian state is expected to recover RON 29 million, while employees are allocated RON 21 million. The remaining debts, exceeding RON 300 million (approximately EUR 60 million), are owed to a variety of other companies.
