ROTTCO CONSULT, a company in the top 10 in the fuel distribution market in Romania, has initiated proceedings for entering insolvency. In a press release, the company justifies the decision with a “complex market situation with a significant negative impact on ensuring the flow of working capital”.

“We have taken this measure as a result of the late payment of some customers. This, correlated with the other causes, has left us with no working capital, the cashflow is heavily unbalanced, and the company is virtually in a financial bottleneck and implicitly incapable of honoring its payments, in turn”, says Paul Pop, General Manager ROTTCO CONSULT.

Among the alleged reasons is also the “suspension of the acquisition of the majority stake in the company after the submission of a binding offer by an investor”. At the end of 2016, the company started the SYNERGY by ROTTCO project, which proposed to bring independent gas stations into a network. The ROTTCO SYNERGY CARD system was functional in over 115 independent gas stations in Romania and was the target of investors, but the company could not sustain its funding for further development.

The company announces that it currently does not register debts to the tax office and that most of the debts to suppliers are covered by warranty letters. The company has to collect receivables of over 10 million lei from debtors who are in forced execution proceedings, claims that cover entirely the current debts that cannot be honored by ROTTCO.

The company was founded in 2007 and has as main activity the wholesale distribution of petroleum products.