MIRCEA URSACHE, ASF: "The investigation of Romcab by the ASF is ongoing"

"Romcab" (MCAB) has the same reporting obligations, during the restructuring period, that it does during its regular operation, said Mircea Ursache, vice-president of the Financial Oversight Authority, (ASF), who told us that the ASF has the company under investigation.

On February 20, the County Court of Mureş approved the request of the cable maker to enter insolvency, as the company reported a loss of 39 million Euros in 2016, even though it had posted a profit of 9 million Euros after the first nine months of 2016.

The difference in reporting came amid a massive depreciation of the inventories, which was explained through accounting errors made by the management of the company, which raised doubts over whether the inventories reported by the company really existed.

"To the stock market, Romcab is a warning, when it comes to oversight and reporting by issuers", said Mircea Ursache, who went on to say: "I believe that through the new issuer law, similar situations will not happen again.

That doesn't excuse in any way the management of the company, the shareholders' policy, the carelessness of the lending banks and the ease with which the loans were granted.

He told me (ed. note: Zoltan Prosszer, the special administrator of the company) that the press statements affect the company's restructuring program.

I want to send him a clear message: that the transparency of the reporting during this period, concerning the policies and decisions of the ASF only reinforces the restructuring program, to prevent it from being altered, like the management activity of Romcab was altered.

Our investigation of the issuer is ongoing.

It is happening as Romcab has the same reporting requirements during the restructuring period, that it has during the functioning period. It is fundamental! As long as the company is listed, even if it is suspended from trading, issuers have to meet the reporting requirements".

When asked whether the ASF can investigate whether Romcab put out false reports, Mircea Ursache told us: "The ASF only investigates contraventions, not crimes. It is criminal investigation bodies that are concerned with crimes".

EximBank is the biggest creditor of "Romcab", and has to recoup 210 million lei, in its own name and in name of the state, according to the preliminary chart of creditors. The chart of creditors of Romcab comprises debts of one billion RON.

"Romcab" is controlled by "Sadalbari", whose shareholder structure saw changes this year. Thus, "Sadalbari" is no longer controlled by Zoltan Prosser, the president and special administrator of Romcab.