Constanta Court Opens Insolvency Proceedings for Damen Shipyards Mangalia

The Constanța Court opened the insolvency procedure of the Damen Shipyards Mangalia company. CITR Bucharest branch was appointed judicial administrator.

“In this complex project, we will contribute with all the know-how of the CITR team accumulated during over 22 years in the management of restructurings through the insolvency procedure with a major impact on our economy. In the next period, the CITR team will analyze the company’s activity in order to understand the business in depth and to identify the conditions in which recovery is possible. We aim to provide as much stability and clarity as possible to all involved. As we are used to you, we will ensure the transparency of the whole process, says Paul Dieter Cîrlănaru, CEO of CITR.

The role of the receiver, according to the legal mandate, is to find the optimal solutions for the recovery of the company. The first step in the insolvency procedure will be understanding the business and the parts that weaken the company’s performance, defining the recovery strategy and the plan for its realization.

Damen Shipyards Mangalia is located on the Romanian Black Sea coast and is a Joint Venture company created by Damen and the Government of Romania, in which Damen is responsible for the operational management of the site.
The yard was originally known as Naval Shipyard 2 Mai Mangalia and started building new ships in 1976. In 1997, Daewoo-Mangalia Heavy Industries S.A. took control of the yard and shifted its focus to building large container ships, bulk carriers and tankers. In late 2017 Damen acquired Daewoo’s shareholding and in the summer of 2018 took over operational control.
Early this month, more than 1,000 of the 1,500 employees of the Mangalia Naval Shipyard entered technical unemployment by the end of this year.
In August last year, Damen Holding BV announced on Friday that it will remain in Romania and continue its activity in Galati, even if it has withdrawn from the Mangalia Shipyard.
CITRConstanta CourtDamen Mangaliainsolvency
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