The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Construction Construction Of Buildings And Infrastructure Engineering Civil Engineering 42.13 - Construction of bridges and tunnels
500 jobs Number of planned job losses
Announcement Date
13 June 2017
Employment effect (start)
Foreseen end date
Description
Viadukt, a Croatian civil engineering company, is facing insolvency and has entered pre-bankruptcy proceedings and announced 500 job cuts. The job cuts will affect employees with indefinite contracts. The company has been experiencing financial difficulties for some time now and been reducing staff. In late March 2017, the company employed 1,173, of which 902 had indefinite contracts and 271 fixed-term contracts.
Expenses for the severance payments of the redundant workers amount to HRK 15 million (€2 million). In order to improve its liquidity, Viadukt plans to sell its stake in the Zagreb International Airport, for which the company's management estimates they will receive €10 million. The management is also reported to be open to recapitalisation of some form.
In April 2017, it was reported that the Trade Union of Construction Industry in Croatia (Sindikata graditeljstva Hrvatske) believed that Viadukt could get a loan from the government in order to unblock its bank account and be able to pay unpaid wages. There is a possibility that current workers from Viadukt will receive the minimum wage from the State Fund for the Insurance of Workers' Claims.
Viadukt specialised in the areas of bridge, tunnel and road engineering. Other business activities of the company include construction and reconstruction of urban streets. Viadukt is one of the few Croatian construction companies to have overcome the financial crisis without going bankrupt; the construction industry in Croatia has been hit hard by the economic crisis.
Sources
13 June 2017: vecernji.hr
13 June 2017: Poslovni.hr
8 April 2017: vecernji.hr
Citation
Eurofound (2017), Viadukt, Internal restructuring in Croatia, factsheet number 91166, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/91166.
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