The majority shareholder of "Romcab" has entered insolvency

"Sadalbari" SRL, which owns 69% of "Romcab" (MCAB) has entered insolvency upon request, on March 31st, according to the ruling of the Court of Mureş.

The event comes one month and a half after the cable maker entered insolvency, also upon request, 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.

The receiver of "Sadalbari" is "General Mir Consult" SPRL, and the first Creditors' Meeting will be held on June 5th.

Aside from local authorities and energy and telecom providers, creditors of "Sadalbari" include Banca Transilvania, International Investment Bank, as well as "Stareal Limited", the offshore in favor of which the company has pledged its majority stake in "Romcab"

"Romcab" is also among the creditors of "Sadalbari".

The insolvency of "Romcab" came as a shock on the stock market, as the official reports of the company were showing that it was going to resolve its default incidents that had occurred last autumn.

Over that time, Zoltan Prosszer, the current president of "Romcab" and "Sadalbari" have conducted a series of operations, that have not been reported to the Bucharest Stock Exchange.

On January 27th, Zoltan Prosszer assigned to Roxana Târcă (the representative of the investor relations department of Romcab) 35 of the 45 shares owned in "Sadalbari". This increased Roxana Târcă's stake in "Sadalbari" to 46.7%, while Zoltan Prosszer was only left with 9.35%. The "Sadalbari" shareholder structure includes Rodica Dochiţoiu (with 37.38%) and Amberyce Limited (with 6.54%), according to data from the Official Gazette. Later, the company reported to the BSE that "Motoplus Paneuro"- a company controlled by Florin Dorin Costea, alleged brother to Zoltan Prosszer - reached a holding of 91.8% in "Sadalbari", while Prosszer was left with a minuscule stake.

Another move that arose suspicions occurred right before "Romcab" filed for insolvency.

The majority stake of 69.02% of "Romcab", owned by "Sadalbari", was pawned to "Stareal Limited" din Cipru, on February 6th, 2017, four days prior to the cable maker of Târgu Mureş filing for insolvency, according to the Electronic archive of Security Interests in Movable Property.

Zoltan Prosszer recently was appointed as special administrator of the company, in the General Shareholder Meeting, which also set a remuneration of 3,000 Euros net /month

The appointment came as the receiver of "Romcab", RTZ & Partners SPRL, had denied the request for additions to the agenda of the shareholder meeting filed by a group of shareholders, invoking the provisions of the law of insolvency. The shareholders in question wanted the approval of a liability lawsuit against CEO Zoltan Prosszer, for damages caused to the company, by violating his duties to the company.

The Financial Oversight Authority, (ASF) fined the "Romcab" CEO 7,000 lei, for not responding or not responding on time to ASF requests.

Trading in "Romcab" stock was 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 led to the change of the financial situation between September 30, 2016 and February 16, 2017. That report has not yet been published.