The fourth auction for Damen Mangalia Shipyard has failed / The next auction will start with a reserve price reduced to 75%

The fourth auction for the sale of Damen Mangalia Shipyard failed on Thursday after no investor registered for the starting price of 184 million euros. The procedure is being conducted in the context of Damen Shipyards Mangalia's insolvency and the asset disposal plan.

The special administrator CITR will organize a new auction in less than two weeks, according to general manager Paul Dieter Cîrlănaru. The starting price will be reduced to 75% of the appraised value, in accordance with the rules of the Civil Procedure Code. If there is no offer, the threshold may subsequently drop to 50%.

The procedure was changed after the first three auctions, held monthly at the price of 184 million euros, failed to attract buyers. The Constanța Tribunal approved the sale by public auction as part of the forced execution proceedings, but Damen Holding BV, the parent company from the Netherlands and a creditor with a 49% stake in the shipyard, filed an appeal.

The action does not suspend the sale, and the process may continue regardless of the court's decision. Damen Shipyards Mangalia entered insolvency on June 19, 2024, after the Dutch group claimed significant debts. The sale is also important for the 920-million-euro contract signed by Romania with Rheinmetall for the construction of four military vessels by 2030.