ZAGREB, Sept. 25 (Xinhua) -- Bankruptcy proceedings for Croatia's debt-ridden shipyard 3. Maj were suspended at the Rijeka Commercial Court on Wednesday.
The bankruptcy proceedings have been repeatedly delayed over the past nine months. The last foreclosure which blocked the shipyard's account was redeemed on Wednesday. The Commercial Court judge, Ljiljana Ugrin, therefore canceled the hearing and the proceedings were stopped.
Payments to subcontractors and suppliers with which an agreement on deferred payment has been reached will begin in a few days.
On Sept. 18, the Croatian government gave a guarantee for the completion of a Canadian client's ship in the amount of 26 million euros (28.6 million U.S. dollars).
The basis for the guarantee was the consent of the vast majority of 3. Maj creditors to postpone the maturity of the debts.
The 3. Maj shipyard was founded in 1892 and in 1956 it concluded its first export contract. It was a leading shipyard until the debt crisis hit in the 1990s.
