Dan Adamescu and Ţiriac Jr. won"t get anything out of Flamingo

• The bankruptcy trustee proposes filing for bankruptcy

It seems the die has been cast for "Flamingo International": the bankruptcy trustee failed to find any alternative to declaring the company"s bankruptcy.

Dragoş Cincă, Dan Adamescu and Ion Alexandru Ţiriac won"t make anything on their investments in Flamingo. The retailer entered insolvency in December 2009, after ING, one of the company"s creditors, foreclosed on the company, seizing its inventory, during the most important month for the retailer, in an action which was unprecedented in Romania, in the case of a company of the size of Flamingo International.

Cristina Dică, a lawyer at RVA Insolvency Specialists, the bankruptcy trustee of Flamingo, stated for "BURSA" that the failure of the retailer"s reorganization was caused first and foremost by the fact that the company had no assets.

"At first, a share capital was considered, but in the end the plan fell through", said Mrs. Dică. She added that the company will be stricken off after the sale of its brand and vehicles.

The retailer had been losing money for several years in a row, and in 2009 was brought down by the crisis, as it couldn"t handle the shock of having its sales fall by more than 40%.

In the spring of 2009, Ion Alexandru Ţiriac acquired 5.12% of the shares of Flamingo for about 300,000 Euros, Dan Adamescu spent almost 1 million Euros on a 20% stake, and Midfair Management, a company controlled by an offshore company registered in Cyprus, paid approximately 1.2 million Euros on a 22% stake.

Dragoş Cinca, the founder of retailer "Flamingo", who, starting back in 2006, after the merger with "Flanco", began reducing his stake in the company, in which he now owns only 25%. Cinca turned his attention to the Daiso store chain, in which it acquired a 55.68% stake this year, for which he paid 3.3 million lei (approximately 790,000 Euros) to his business associate Ştefan Iacoviţă. The acquisition was made through investment fund Neole Limited.

The creditors of "Flamingo International" are summoned today, by the representative of the bankruptcy RVA Insolvency Specialists, lawyer Cristina Dică, to approve the report which acknowledges the impossibility of the company"s reorganization and to vote on the beginning of the bankruptcy procedure. Some of the company"s creditors include Metro, Carrefour and BRD Sogelease IFN. Flamingo International has debts towards almost 120 companies.

Flamingo entered insolvency on December 14th 2009, and since then trading in its stock has been suspended. The company lost its main assets through the reorganization of Flanco International and after its stores were acquired by the shareholders of the Asesoft group in September.