Following the financial difficulties of the Szczecin shipyard, banks are assuming the same risk is associated with others in the sector. Despite a very good track record, banks have pulled the plug on the Gdynia shipyard.
In order to continue production, the shipyard is having to use PLN400m of its own cash.
Solutions are not easy to find. The yard could try to raise money abroad but this would be very difficult given the currency exchange risk. Other solutions could be issuing bonds, shares or bonds exchangeable for shares.
Yesterday the yard announced that employees would be paid in installments.
Union boss Dariusz Adamski admitted that it was very bad news for the workforce but accepted that the industry was in a very bad way.
Sebastian Luczak, press spokesperson of Pekao S.A. said that all credit lines have been exhausted. However if a ship was sold which has been financed by his bank then theoretically funds would be released for further projects.
Gdynia needs around USD500m annually in order to finance projects. The current solution of using own funds is very much a temporary one.
The company has announced that it will seek government guarantees, the same as the Szczecin yard has already received.
Unlike Szczecin, Gdynia is not immediately threatened by bankruptcy.