PetrolExportImport to file for insolvency

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The PetrolExportImport Shareholders General Assembly will discuss, on October 1, the request for opening the simple procedure for insolvency, according to the notification posted on the Bucharest Stock Exchange (BVB) website. The reason is related to the takeover, by Piraeus Bank, of a building in Bucharest by foreclosure.

The company says that the difference between overall assets and overall debts has diminished to less than half of the subscribed capital, with negative levels.

The notification reads that the Board of Directors will convene the Shareholders General Assembly and will propose for approval the request to open the simple procedure for insolvency, according to Law 85/2014, informs.

The company’s shares fell on Thursday at the BVB by 14.12% to RON 1.52 per share. This year, the shares lost 62% of the value, 37.19% during the past month.

The company registered positive results in the first half, a net profit of RON 2.17 million, against losses of RON 1.45 million in the similar period last year.

The long term asset value has decreased from RON 8.52 at the end of 2017 to RON 102,304. The overall assets of the company amount to RON 66.7 million, with debts amounting to RON 173.4 million.

PetrolExportImport was established in 1948 as a state company for foreign trade. After the 1990 Revolution, the company was managed by Ovidiu Popescu, one of the well known people in the petroleum industry, who died in 2011 in the US.

During the communist regime the company had monopoly on the petroleum exports and imports. Until 1997 it has the monopoly on crude oil imports and on the exports of refined petroleum products.


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