Croatia has arrested 12 people on suspicion of causing more than HRK 1bn ($152m) of financial damage to struggling shipbuilder Uljanik Group and the state budget.
Interior minister Davor Bozinovic told state news agency Hina: "This morning the police began action during which 12 people were arrested."
Domestic media said among the dozen held were former top executives at the yard, which has been hit by order cancellations and strikes by workers seeking back-pay.
About 100 officers were involved in raids on homes and offices, reports said.
The group is 25% state-owned and operates Uljanik Shipyard and 3 Maj.
Workers went on strike again this week, welding two gates shut, as the government considered bankruptcy or a $1.1bn restructuring plan.
Compatriot yard Brodosplit has agreed to be a new financial partner.
Prime minister Andrej Plenkovic said the government wanted first to assess the viability of a restructuring before any decision on pouring more state money into the shipbuilding industry, Reuters reported.
