Inox Măgurele enters into preventive composition procedure

The Ilfov Court has ordered the opening of the preventive composition procedure for the company Inox Măgurele, according to a report by the issuer published on the website of the Bucharest Stock Exchange (BVB).

The measure involves the suspension of forced executions against the company for a period of four months. The court also set a deadline of April 10, 2025 by which the issuer must develop, communicate to creditors and submit the file of the restructuring plan of the activity.

"Within the framework of the restructuring plan of the activity that will be developed, the method of payment of the interest coupon no. 12 and the repayment of the principal of the bonds issued under the symbol INOX24E will also be specified," the BVB report also states.

In the second half of last month, Inox Măgurele shareholders approved the sale of assets that would have allowed the payment of the last coupon and repayment of the principal of the bonds. Since the sale did not take place, the Board of Directors of the issuer decided to file a request to open a preventive composition procedure.

The total value of the company's bond issue is one million euros, with the securities being issued in September 2021, with maturity in September 2024. According to the bond listing prospectus from February 2022, 0.6 million euros of the funds raised from investors were to be used for the rehabilitation of existing facilities and the purchase of air purification equipment, and 0.4 million euros to supplement the existing equipment necessary for the production of standard surgical masks.

In November of this year, Inox Măgurele announced that it was postponing the payment of the twelfth coupon and the principal on the grounds that the auction of movable assets under seizure by ANAF at the end of October did not take place due to a lack of bidders.

For the first nine months of the year, the company reported operating income of 1.73 million lei, well below the approximately five million lei in the same period last year, while exploration expenses amounted to 4.12 million lei, 10.2% below those in the first three quarters of last year. Thus, Inox reported a loss of 2.9 million lei, compared to a small profit in the first nine months of last year.

Inox is a company from Măgurele specialized in the production of stainless steel metal products and equipment for industrial kitchens in the HoReCa sector, for the naval industry and cruise ships. Alguns Eood from Bulgaria has 31.4% of the company, a holding similar to that of Ginerva Enterprises from Cyprus. Yesterday, in the first part of the trading session, the stock market valuation of Inox Măgurele was six million lei.