Croatian bankruptcy proceedings have widened to include the parent group of Uljanik Shipyard.

Uljanik Group said an action had opened against it on 20 May, as announced on the ministry of justice website.

Bankruptcy proceedings against Uljanik Shipyard had begun last week in the district court at Pazin..

The group also includes shipbuilder 3 Maj and other subsidiaries.

Its shares have been suspended on the Zagreb exchange, SeeNews reported.

The group has been struggling with cash flow, worker strikes and cancelled ship orders for months.

The Croatian government is hoping to lure Chinese investors to rescue the yard.