Alser Forest intends to start insolvency proceedings

The forestry company Alser Forest, which has bonds listed on the Multilateral Trading System of the Bucharest Stock Exchange (BVB), intends to start the insolvency procedure, according to a report of the issuer published yesterday on the website of the operator of our market of capital.

"Alser Forest announces that, due to the economic crisis in the Romanian forestry sector that began in 2023 and continues in 2024, the financial situation of the company has worsened and, in the shortest possible time, it is possible to start the insolvency procedure of the company with the intention of reorganization", the issuer's report from BVB states.

For this reason, the company will not be able to pay, at the due date, the sixth and last coupon, nor repay the principal related to the bonds issued in 2021, which are listed on the BSE under the symbol ALS24E. "The intention of the subscription is to enter into reorganization and we hope that the economic factors will determine an increase in the company's activity, so that we can honor the debts to the creditors", the BVB report also states.

The value of the bond issue is 1.5 million euros, being composed of 15,000 titles, with a nominal unit value of 100 euros, with a fixed interest rate of 8% per year. The maturity of the bonds and the payment of the last coupon is on April 30, 2024. In the first half of last year, Alser Forest reported a turnover of 17.8 million lei, 19% above that of the first six months of 2022, but a loss of almost 2.4 million lei, compared to a profit of 1.2 million lei, for the same reporting period.

"Turnover increased by 19% compared to the first semester of 2022, but operating expenses increased by 60% due to the major crisis in the Romanian forestry sector, which determined that sales margins were low compared to previous periods. Also, the increase in expenses was also determined by a cost generated by the accounting correction of some salary benefits of the company's employees from the past years 2021-2022", according to the report.

In the middle of last year, the company had total assets of 23.6 million lei (of which 22.8 million lei were current assets) and total liabilities of 26.8 million lei. Thus, Alser Forest had negative equity of almost 3.2 million lei.

According to the prospectus from the June 2021 bond listing, Alser Forest offers services in several directions: supply and maintenance of automated equipment specific to the forestry sector, supply of equipment for the entire forestry production chain, for horticulture, construction and forestry.

The company is 80% owned by Albert Şerban, while 20% of the capital is owned by Alser Force SRL, a company owned by Dennis Şerban, according to the first semester report published on the BVB website.