In a surprising turn of events, Dutch shipbuilding giant Damen has filed a bankruptcy request against its joint venture with the Romanian government, Damen Shipyards Mangalia. The request, submitted to the Constanta Tribunal on May 28, 2024, has sent shockwaves through the industry and raised concerns about the future of the Mangalia shipyard.
According to court documents published on the justice ministry's online portal, the first hearing is scheduled to commence on June 14. The creditor's claim, as reported by Radio Free Europe Romania, revolves around loans amounting to €160 million that Damen has granted to the Mangalia shipyard since 2018. Laurentiu Gobeaja, trade union leader at the shipyard, also revealed that approximately 70% of the shipyard's employees are facing technical unemployment.
The joint venture between Damen and the Romanian government was established in 2018 when Damen acquired a 51% stake in the Mangalia shipyard from Daewoo Shipbuilding & Marine Engineering. Subsequently, Damen transferred 2% of its stake to the Romanian government, allowing the Romanian state to become the majority shareholder in exchange for maintaining operational and managerial control of the joint venture.
However, the partnership took a turn for the worse in August 2023 when Damen decided to terminate its contract with Romania regarding the Mangalia shipyard. The Dutch group cited a legal framework that violated the conditions offered in its favor by the Romanian state in 2018, as well as three years of blockages in the decision-making process and a lack of involvement or financing from the Romanian partner.
The situation escalated further in April 2024 when Damen sued Romania over the Mangalia shipyard contract at the Vienna International Arbitral Centre, demanding its cancellation. Finance minister Marcel Bolos confirmed the lawsuit in a statement to Radio Free Europe Romania.
The bankruptcy request and the ongoing legal battles have cast a shadow over the future of the Mangalia shipyard and its employees. The shipyard, once a symbol of the region's industrial prowess, now finds itself in a precarious position, with its fate hanging in the balance.
As the case unfolds in the Constanta Tribunal and the Vienna International Arbitral Centre, industry experts and stakeholders eagerly await the outcome. The resolution of this complex dispute will not only determine the future of the Mangalia shipyard but also have far-reaching implications for the shipbuilding industry in Romania and beyond.
