The company’s shareholders Wednesday decided to increase the share capital by RON81.1 million, of which RON70 million (EUR15.7 million) represents debt compensation and RON11.1 million will be offered for subscription to the other shareholders to keep their stakes.
The EUR68.7 million debt to Saudi Al-Arrab Contracting Company consists of a loan worth nearly EUR58.4 million and interests of EUR10.3 million, according to shareholders’ decisions sent to the Bucharest Stock Exchange.
Electroputere has a share capital of RON33.7 million, which will climb to RON103.7 million if increased only by compensating a part of debts to Al-Arrab.
Al-Arrab currently owns 86.3% of Electroputere shares.
In late 2012, Electroputere sold its locomotive making unit to Romanian entrepreneur Gruia Stoica for an undisclosed amount. The company currently runs two divisions that produce electrical rotating machines and power transformers, as well as general services unit.
Electroputere reported a loss of RON29.6 million in the first half of 2013, narrower from RON332.6 million in the year-earlier period. The company last posted profit in 2000.
On the Bucharest capital market Wednesday, Electroputere traded up 6.78% at RON0.0063 a share. (EUR1=RON4.4328)