Severnaya Verf and Baltiysky Zavod shipyards to face bankruptcy

27.06.2011 JSC Severnaya Verf and JSC Baltiysky Zavod will face bankruptcy soon, said president of United Shipbuilding Corporation (USC) Roman Trotsenko at press conference during the Saint Petersburg International Economic Forum.

At present, Russia's Central Bank holds trial proceedings with JSC United Industrial Corporation (UIC) regarding value of shipbuilding assets.

"I think they'll finally come to a legal solution and win those shares", said Trotsenko adding that "in our view, UIC delays this process wittingly, moving out assets from the shipyard and preparing them for bankruptcy. It is apparent to everyone that Central Bank won't get money back. We don't negotiate on this issue as title of ownership is under trial. Central Bank has not taken possession of property, shares are pledged, and UIC cannot control them. Obviously, refund value exceeds actual cost; the situation gets worse".

Last year USC displayed interest in purchasing of the shipyards, having evaluated shipbuilding assets of UIC as RUR 20 bln. Probably, soon USC would have to impose crisis management through bankruptcy, although specialization of the shipyards is to be the same.

Answering the question about ships being built at the yards, Roman Trotsenko informed: "Baltiysky Zavod has not orders at all. As for Severnaya Verf, there is a corvette order, but not apparent though. By the way, the yard frustrated delivery of corvette Soobrazitelny in this year. A big question appears – how much money does the yard need to complete those orders while all assets are moved out? Someone should build this ship, and then such order is no longer an asset but a liability. When Central Bank takes possession of the shipyards, we'll talk on that".

Reference

JSC Baltiysky Zavod is specialized in construction of icebreakers and ice-class vessels (nuclear- and diesel-powered), heavy-tonnage vessels for cargo shipping, and warships; produces wide range of engineering products and power plant equipment; supplies non-ferrous and steel castings.

JSC Severnaya Verf is one of the Russia's top defense-oriented companies. Since 2004 it is a part of JSC United Industrial Corporation (Moscow). Basic product line includes surface warships and various commercial vessels.