22 February 2013 14:59 [Source: ICIS news]
LONDON (ICIS)--Croatia's finance ministry on Friday said it will take court action against Turkey's Caliskan group to protect state capital it claims is at risk as a result of the corporation's withdrawal from an agreement to rescue low density polyethylene (LDPE) producer Dina Petrokemija.
Caliskan had activated a €5m ($6.6m) state guarantee to cover the payment of workers' back wages at Dina, a subsidiary of the mothballed Zagreb-based Dioki group, after informing the ministry it no longer wished to participate in efforts at restarting production at Dina, it added.
Finance minister Slavko Linic would protest to a court that Caliskan was not entitled to the stage guarantee because it had not acted in the way that it is incumbent upon a serious investor to act, the ministry said.
Caliskan was not available for comment.
Efforts at saving both Dina, based on the Croatian island of Krk, and parent petrochemical group Dioki, were now focused on reaching an agreement with Croatian oil and gas supplier Crodux Plin, the ministry said.
Last 18 December, Crodux Plin said it had plans to start up both the 50,000 tonne/year polystyrene (PS) and 15,000 tonne/year expandable polystyrene (EPS) plants at Dioki's Zagreb site if it was accepted as a strategic investor in the indebted firm.
Crodux Plin has since added that it may also be interested in becoming an investor in the Dina subsidiary.
Dina Petrokemija has a 90,000 tonne/year LDPE unit and a 200,000 tonne/year vinyl chloride monomer (VCM) on Krk.
($1 = €0.76)
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