Damen Mangalia Shipyard auction fails for third time

The third auction for the sale of the Damen Mangalia Shipyard has failed to attract any bidders. The starting price was set at the estimated market value of approximately 184 million euros, significantly higher than the liquidation value of roughly 84 million euros.

CITR, the firm managing the shipyard, reported that no participants registered for the auction held on Friday. The discrepancy between the market value and the liquidation value is cited as a primary reason for the repeated auction failures. While the majority creditor, Damen Netherlands, approved the sale at the higher market price, other potential investors, including MSC and the German company Rheinmetall, have reportedly expressed interest only if the starting price is lowered.

The shipyard is currently in bankruptcy, with its workforce reduced from over 1,000 employees to approximately 100 staff members focused on security and maintenance. Creditors awaiting repayment include the Romanian tax authority (ANAF), which is owed nearly 120 million lei, and employees, who are owed approximately 25 million lei. A decision from the Constanta Tribunal is expected on September 4, which may determine whether the sale proceeds under the Civil Procedure Code, potentially allowing for a descending price structure.