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The Financial Supervisory Authority (ASF) Council has decided that the insurance company belonging to billionaire Ilie Carabulea, Carpatica Insurance, to go bankrupt, withdrawing its operating license and sending to the court an application for bankruptcy, realitatea.net reports.
According to an ASF official release, the Council decided on Wednesday to withdraw the operating license of Carpatica Asig SA, following the finding of the company’s insolvency, and is to promote the demand for opening of the bankruptcy proceedings under Law 503/2004 (republished) and Law 85/2014 (will be released in a separate press release).
ASF has also decided to file a request for bankruptcy to court. The bankruptcy status will be confirmed only after the Court and the court of appeal will decide.
Carpatica Asig was managing late last year over one million insurance policies. The insurer’s losses increased from RON 45.6 million in 2014 to RON 204.4 million by the end of 2015. The liquidation of Carpatica would be the third bankruptcy of an insurance company decided in the last two years, after Astra and Forte Asigurari.
The International Insurance Consortium (IIC), the Netherlands-based company that showed interest in acquiring Carpatica Asig, announced on June 7 that it has stopped the completion of the purchase of all shares of the Romanian insurance company.
This implicates that IIC Group have also withdrawn its application with the Financial Supervisory Authority (ASF) to approve its 100 percent shareholding in the company.
“IIC Group had a clear view on the necessity of a revitalisation plan for Carpatica promising a new future. Since the special status of Carpatica being placed under special management by the Guarantee Fund for the Insured (FGA), IIC Group found itself in a situation in which it was denied any further access to crucial and relevant information. In this unusual communicative blockade it moreover appeared to be impossible to set up a useful cooperation with those in charge of management and operations,” the release read.
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