SIF Transilvania to challenge the decision concerning "Eurocopter"

SIF Transilvania, the minority shareholder of IAR Ghimbav, will challenge in court the decision of the government to transfer the core assets of the company to the joint venture with "Eurocopter".

Mihai Fercală, the chairman of SIF Transilvania, yesterday said that the attorneys of his company are ready to file a lawsuit against the decision of the General Board of Directors of IAR Ghimbav by which the operations of IAR Ghimbav was assigned to the joint venture "Eurocopter" Romania: "This action of transferring the business of the company to another is simply outrageous, especially since we are dealing with a French owned company. I don"t think that the French would have done such a thing. And since both Romania and France are part of the European Union, it has to be known that minority shareholder also have rights. We are not the only ones going to sue - there are other shareholders, investments funds - which are intent to go to court over that decision of the General Assembly of Shareholders of IAR Ghimbav".

Mihai Fercală also expressed his amazement at the fact that anything that was built after 1989 is now handed away on a silver platter to others: "Now, instead of IAR Ghimbav producing helicopters for the Ministry of the Administration and Internal Affairs, they will be produced by the French".

Two months ago, the shareholders of IAR Ghimbav have approved the transfer of the company"s most important asserts to "Eurocopter" Romania, as a contribution to the company"s share capital. The decision was approved with 79% of votes in favor and it contains the following provisions: "The participation of IAR SA to the share capital increase of Eurocopter Romania SA by contributing in kind with plots of land, buildings, tangible assets, preparation for production, technical documentation for the maintenance repair and overhaul of the IAR 316 B Alouette III and IAR 330 Puma helicopter models. IAR SA will contribute 3,259,000 Euros to the share capital of Eurocopter România SA, an amount which represents the value of the assets contributed by Eurocopter România SA, amounting to 3,533,000 Euros (a value which was set by the Evaluation Report drawn up by Romcontrol SA), compensated with the amount of 274,500 Euros which represents the unused contribution to the initial share capital of SC Eurocopter România SA (which will be used for ten years instead of ten years as initially provided), which represents the beneficial interest on the buildings and lands which IAR contributed in 2003 to the share capital of Eurocopter Romania".

It is bizarre that a few years ago "Eurocopter" would only pay a million Euros for the combined assets, and now it is willing to pay over 3 million Euros for just a fraction of those assets.