Romcab, a leading market player in the cables segment, must enter insolvency, while creditors are dissatisfied only with the appointment of the insolvency manager, told energynomics.ro one of the creditors’ representative.
“It was challenged the appointment of the administrator only. Obviously, the company has tried to appoint an administrator it liked, and lenders have not agreed with that. It is undisputed, however, that it should enter insolvency,” says the quoted source.
Romcab situation, which last year reported losses of almost 40 million euro, becomes more tangled, after mainstream media reported that some creditors have challenged the insolvency manufacturer of industrial cables.
Once it reached the limit of indebtedness to banks, Romcab began to finance itself through supplier loans, which dragged down the entire industry.
Romcab asked the Mures Court to enter into insolvency last month. Lenders appealed this week the appointment of the judicial manager, which delays the insolvency process as well.
Romcab’s problems have dragged down its stock prices by 80% during the last three months. The movements on the stock market were driven by the fact that investors have learned about American investment bank Morgan Stanley’s exit, which had since 2007 a stake of 22.87% of the company, at the same time with news about Romcab’s over 100 recorded incidents of payment Central Credit Risk at National Bank of Romania. According to profit.ro, the insolvency of Romcab and its catastrophic losses sent the entire market in turmoil.
