Uljanik Group chairman Emil Bulic has said all but one of its customers have cancelled their vessel orders.
Bankruptcy proceedings were opened against the Croatian shipbuilding company this week after it struggled with cash flow and worker strikes.
Bulic told reporters it is very important to launch negotiations as soon as possible to salvage uncompleted orders worth more than HRK 1.4bn ($1.56bn).
Cash injection
"The system can no longer operate on market principles," Bulic said, adding that "the only chance is for the system to get an injection of money to provide for minimum functioning."
Talks are being held with clients who have cancelled orders.
The one likely remaining customer is Australia's Scenic Cruises, which has one cruise vessel near completion and another on order.
Owners such as Siem, Jan de Nul and CLdN Cobelfet have all confirmed cancellations.
CLdN is still thought to have one ro-ro on order at Uljanik Shipyard, as is KTZ Express of Kazakhstan.
The Croatian state has issued a EUR 125m guarantee for a dredger contracted by Jan de Nul.
Bulic said negotiations with the owner were "on the right track as the benefit is huge for all".
State guarantee
"The state is interested in keeping that value and cashing the state guarantee, while Jan De Nul has shown interest in taking over the ship," he added.
"The question now is under what terms it will be done."
He said the government would have to pay out as the client had launched an enforcement procedure.
Bulic said the bankruptcy of the parent company did not mean the bankruptcy of subsidiary 3 Maj.
The government is hopeful of securing Chinese investment in the company to keep it operating.
