Croatian shipbuilder Brodotrogir is seeking a court restructuring after running into financial trouble.
The commercial court in Split has begun a pre-bankruptcy procedure at the request of the company.
This is a pre-emptive move in a bid to unfreeze its bank account, the Jutarnji Vijesti website reported.
"A further blocking of the account would cause long-term insolvency, which would undoubtedly have far-reaching negative consequences for the continuation of operations, and ultimately would lead to the termination of business or bankruptcy," the newspaper cited the restructuring plan as saying.
The group has been affected by a fall in revenue and lack of liquidity in affiliated companies.
Total claims against it amounted to HRK 187.4m ($28.31m) at the end of February.
Hearing scheduled
A hearing for the examination of claims will be held on 10 July.
Brodotrogir is owned 95.24% by Danko Koncar's Kermas Energija, which is also a creditor.
It controls 12 companies and employs about 700 workers.
"Brodotrogir, as the parent company for financing the production process and investing in affiliated companies, secured loans from the owner (Kermas) in the amount of HRK 91.7m to finance the costs of the process of related companies," the plan says.
Kermas was last year lined up as a rescue partner for troubled compatriot yard group Uljanik Shipyard, before pulling out.
Brodotrogir has a $30m contract with Viterlef Management of Russia to complete an MR cancelled eight years ago by Odfjell at Russia's Sevmash.
The vessel appears to be the former Bow Dvina, ordered for $41m.
It has been renamed Dvina Gulf after being towed to Croatia. The tanker is due in 2019.
Brodotrogir is also building two MPPs for Canada Feeder Lines, also due in 2019, as well as two ferries for unknown owners that will be delivered this year and in 2020.
