The government is working on rescuing Crnogorska plovidba from insolvency by leasing its two vessels to Barska plovidba, which is set to provide an advance payment of up to one million euros.

This announcement was made by the Minister of Maritime Affairs, Filip Radulović, during a press briefing. He noted that the Government has acknowledged the pressing insolvency situation of Crnogorska plovidba in their recent session.

Radulović highlighted that the company has been in a dire financial state for an extended period, indicating that its debts exceed 36 million euros.

“We are facing an acute issue as a debt of 400,000 euros became due in January, and they have yet to settle it. The bank is poised to initiate forced collection, which would lead to the blocking of its account and the seizure of the two ships at various ports globally, resulting in increased costs. This scenario would prevent employee salaries from being paid and could possibly initiate bankruptcy,” Radulović emphasized, adding that the two vessels belonging to Crnogorska plovidba are valued at nearly 30 million euros, significantly less if categorized as bankruptcy assets.

He explained that, as a temporary measure, they intend to establish a business and technical cooperation agreement between Barska and Crnogorska plovidba, which will involve leasing the two ships to Barska at market rates, with the advance funding facilitating the necessary liquidity.

Radulović also noted that Crnogorska plovidba ended the previous year with a deficit exceeding two million euros. Following a resolution to this crisis within the next month, they plan to formulate a restructuring plan for the company by year-end.

According to Radulović, this will be a mutually binding contract for business and technical cooperation, with the advance amounting to up to one million euros, and the companies will negotiate on tranches and monthly payments. He added that the Government’s resolution will be submitted to the Shareholders’ Assembly of Crnogorska plovidba, and a decision is expected within a month.

Sufficient Payments for Liquidity

Prime Minister Milojko Spajić mentioned that this contract would ensure that the payment amounts would sustain the liquidity of Crnogorska plovidba, similar to the situation faced by the Simo Milošević Institute.

“This initiative offers a renewed opportunity for Montenegrin navigation, and the Ministry will focus on the future of maritime transport. We anticipate finalizing a solution by the end of this year, ensuring a secure future for the shipping sector. Jobs have been safeguarded, and citizens will continue their employment. We’ve addressed the liquidity issue, akin to our approach with the Institute—we first tackled liquidity, followed by a Restructuring Plan. We aim for a similar strategy this time to prevent the company from any shutdown in the coming months or actions from banks,” Spajić noted.

He underscored that this resolution complies with Montenegrin laws, is implementable swiftly, and will ensure timely execution of necessary steps.

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