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AFTER 20 YEARS
The longest bankruptcy in the EU is over: Workers didn't get anything, bankruptcy trustee richer by HRK 623,000
Vedran Uranija, legal representative of the workers of the Šibenik Review and their union commissioner, talks about bankruptcy
By: Zlatko SimicPosted: September 26, 2020 5:49 pm
Vedran Uranija
Vedran Uranija
Jure Miskovic / Cropix
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1. Mr. Uranija, as the legal representative of the workers of the Šibenik Review and their union commissioner, how did you experience the conclusion of their bankruptcy after 20 years, which makes it the longest in Europe?
- I took over the representation of some of the workers of the Šibenik Review at their request a little more than seven years ago, after which we immediately undertook a large workers' union protest on the Šibenik waterfront. We asked the bankruptcy trustee and the court to pay 3.3 million kunas obtained from the sale of the old administrative building to former workers, which happened, so that 326 former workers were paid, who received a quarter of the debt of the total court-recognized 13.3 HRK million
Yesterday, September 24, I experienced the express conclusion of bankruptcy as the end of the agony of former workers that has lasted for almost 20 years because it is the longest bankruptcy in the Republic of Croatia and Europe. At the same time, the conclusion of the bankruptcy at yesterday's hearing means that all relevant European norms on the length of court proceedings have been violated.
2. How is it that the longest bankruptcy is completed after 20 years in just one minute? What were you told in court?
- It is unbelievable that a bankruptcy that has lasted for almost 20 years ended in just one minute. The bankruptcy judge should have explained the reasons for such a long-term bankruptcy procedure, why no buyers could be found for the company and why the remaining claims of former workers could not be settled, and at the same time the bankruptcy trustee was awarded HRK 600,000 gross in bankruptcy, nor has a buyer been found for the company. Thus, the prize is awarded for no result.
3. And what will you do now, what are your next steps?
- I want to emphasize that our battle for workers' rights does not end with yesterday's express bankruptcy. On the contrary, only the first phase of the battle for workers 'rights of former workers ended yesterday, after almost 20 years, and the second phase of their battle for workers' rights begins today, ie for the payment of the remaining HRK 9.7 million in claims or at least 8 salaries.
We have previously proposed on behalf of former workers that the Republic of Croatia, as the largest creditor with 65 million claims, waive part of the claims in favor of former workers. We believe that the Republic of Croatia has a moral responsibility towards the former workers of the Šibenik Review, who sewed for the Croatian army during the Croatian aggression.
4. As many as 326 workers announce that they will not give up their claims and claims of HRK 9.7 million. Is that all?
- We will never give up our demands and claims to be paid the remaining HRK 9.7 million of claims. We believe that our Prime Minister Plenković and the ministers will have the hearing and social sensitivity for our proposal and appeal and will satisfy them.
5. The workers were left without kuna, and the bankruptcy trustee Ivan Rude is richer by 623,000 kuna. He told us yesterday that he could not come to court due to health problems. The workers say he did not run the bankruptcy well. What do you say?
- It is really cynical for the bankruptcy trustee to receive an award of HRK 623,000 because no results were evidently achieved in the bankruptcy. The procedure took an infinitely long time, the longest in Europe, and damage was done to the state, especially to former workers, but also to other creditors.
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6. Rude states that a solution could be found for the company, but "when it was possible, it was not wanted, and when it was wanted, it was not possible". Where did the sales get stuck, so there were five specific offers?
- Once a famous clothing company, Šibenik Revija could have worked with at least three hundred workers a long time ago if quality offers for the purchase of the company were accepted by Čakovec's Betex, Šibenik's Inter or Unešić's Djelo and Rosšport, companies that wanted to continue production, take over all workers and execute additional investments, but these quality offers were rejected for incomprehensible reasons.
image
The plant of the once powerful textile company Revija
Nikša Stipaničev / Cropix
7. Um, “incomprehensible reasons” probably led to bankruptcy at the time?
- In a way, yes. Bankruptcy occurred for classic reasons, the blocking of the company's accounts, insolvency and financial difficulties, due to which the company could not regularly settle its obligations to workers and other creditors. This happened back in 2001, before that the company was doing relatively well and solidly, but suddenly huge debts were accumulating, even though there were more than enough orders. The workers worked in regular and overtime work, so it is very strange how and why so many debts suddenly accumulated, which led to the blockade of the company and the opening of bankruptcy.
8. The management seems to have been doing its job. What solutions did you offer as a trade unionist in the bankruptcy proceedings?
- I previously stated that there were quality bidders who were not accepted, and they could and had to be accepted. During as many as 24 public auctions, the Šibenik Review tried to sell itself, but without success. We proposed announcing an international tender, but the bankruptcy trustee did not accept it, so the public auctions were futile and unsuccessful. We demanded that the starting price of the company of around HRK 25 million, which eventually dropped to HRK 5 million, not be reduced in any way. We also requested that the bankruptcy trustee and the court find a mode in cooperation with the Republic of Croatia for the payment of former workers in the remaining part of the claim. But none of that.
9. Workers who sewed uniforms for the army under grenades are the biggest victims. What do they tell you?
- Former workers are not only the biggest victims of bankruptcy, but in the 90s they gave everything for Croatia by working under grenades during the aggression on the Republic of Croatia, and they also lost their jobs and the majority of claims around HRK 9.7 million. They, like me, are disappointed in the rule of law. It is evident that there was a systemic error in conducting bankruptcies in the Republic of Croatia.
10. You fought for workers' rights in many bankruptcies in Zadar and Šibenik. What do they have in common, in what ways did they cheat and disenfranchise the workers?
- I have fought and am fighting for workers' rights in many bankruptcies and labor disputes in Zadar and Šibenik. In many cases, over 95%, we have succeeded and continue to protect the rights of former workers in relation to their salaries and severance pay. However, if I refer to bankruptcies that were conducted under the previous law, in which the deadline for conducting bankruptcies was not limited, what they have in common is that bankruptcies have been and have been conducted for years. Back a little over three years, since the bankruptcy law was changed, the situation has changed significantly and bankruptcies can last for a maximum of two years.
The primary thing is to carry out bankruptcy restructuring, find a quality buyer-investor and pay off workers' claims. The case of the Šibenik Review was conducted according to the old law, and from that case everyone must learn that something like this will never happen again, and the former workers and I will continue to uncompromisingly insist that they be paid the remaining HRK 9.7m. The Government of the Republic of Croatia is on the move, and finally we will submit an application to the International Court of Human Rights in Strasbourg for violating the fundamental human rights of former employees of the Šibenik Review and monetary compensation.
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