Several shareholders of "Romcab" have proposed the bringing of a liability lawsuit against Zoltan Prosszer

A group of "Romcab" (MCAB) shareholders, who together hold more than 5% of the company, has asked for an addition to the agenda of the General Shareholder Meeting of March 27th: the proposal for the approval of the liability lawsuit against CEO Zoltan Prosszer, for damages caused to the company, by not carrying out his duties to it.

On February 20, the County Court of Mureş has approved the filing for insolvency of the cable maker, as the company posted a loss of 39 million Euros in 2016, even though it had posted a profit of 9 million Euros at the end of last year's 3rd quarter.

The shareholders in question had also asked for the introduction on the agenda of the appointment of a person to bring the liability proceeding.

The bankruptcy trustee of "Romcab", RTZ & PARTNERS SPRL, has rejected the request, invoking the provisions of the law of insolvency.

RTZ & PARTNERS SPRL claims, in the response addressed to the shareholders, that the bankruptcy trustee has the role of summoning the General Shareholder Meeting with a specific agenda, namely for the appointment of the special administrator.

Also, according to the insolvency law, "after the launch of the insolvency proceedings and the appointment of the special administrator, the general shareholder meeting suspends its operation and may only meet upon being summoned by the bankruptcy trustee, in the cases expressly and in a limitative manner provided by the present law".

Also, the receiver invoked the order that it received from the syndic judge to call the general shareholder meeting for the appointment of the special administrator.

Market sources claim that the law of insolvency and the syndic judge do not say that shareholders are not allowed to make additions to the agenda of the shareholder meeting, as their goal was precisely to prevent Zoltan Prosszer, whom they consider responsible for the losses reported by the company, from being appointed as special administrator.

The sources claim that the shareholders are now considering suing RTZ & PARTNERS SPRL as well.

Trading in "Romcab" shares has been suspended on February 17th, upon the request of the Financial Oversight Authority (ASF), which asked the company for a detailed report concerning the factors which have led to the change in the financial status of the company between September 30, 2016 and February 16, 2017. That report has not been made public yet.

The Financial Oversight UAASF recently notified the DIICOT concerning the difference in the two financial statements posted by "Romcab" over two consecutive quarters, namely the profit of 9 million Euros, posted after the first nine months of 2016, and the loss of 39 million Euros reported for the entire year 2016, according to stock market sources.

The information concerning the losses posted by "Romcab" and the financial issues of the company which were made public in the beginning of this year, have been accompanied by changes in the shareholder structure of "Sadalbari" SRL, which owns 69% of "Romcab".

"The share capital of SC Sadalbari SRL, made up of 110 shares, is distributed as follows: SC Motoplus Paneuro SRL - 101 shares (91.8%), Prosszer Zoltan - 2 shares, Amberyce Limited - 7 shares", according to the report sent yesterday to the Bucharest Stock Exchange.

According to information from the Trade Registry, 99.9% of Motoplus Paneuro SRL is owned by "Paneuro International" SRL. In turn, "Paneuro International" is controlled by Florin Dorin Costea, who holds 99.33%. According to some market sources, Costea is Zoltan Prosszer's brother.

The move came after, on January 27, Zoltan Prosszer assigned to Roxana Târcă (the Romcab investors relations department representative) 35 of the 45 shares it owned in "Sadalbari". Thus, Roxana Târcă had reached a stake of 46.7% of "Sadalbari", while Zoltan Prosszer was only left with 9.35%. The "Sadalbari" shareholder structure also included Rodica Dochiţoiu (37.38%) and Amberyce Limited (6.54%), according to data from the Official Gazette, which however wasn't notified to the BSE.