According to Misu Negritoiu, head of the Romanian financial regulator ASF, after analyzing the report of special administrator KPMG, ASF decided to close the financial recovery procedure, to revoke KPMG, to withdraw the company’s license, establishing its insolvency and asking for bankruptcy procedures.
Negritoiu said that, on June 30, Astra had a negative solvency margin of RON871 million, a liquidity ratio of 0.03% and a necessary capital of approximately RON968 million.
ASF head added that the Guarantee Fund is able to cover Astra compensations.
No investor was interested in participating in Astra’s share capital increase, while the company’s special administrator KPMG had previously said it would further analyze other options in lack of an alternative doable plan.
The third stage of the share capital hike, addressed both to existing shareholders and to other institutional investors, ended on August 19.
After the first two stages, Astra raised only RON134,000 of the total RON425 million necessary to the company.
The majority shareholders of insurer Astra, The Nova Group Investments and Epsilon Estate Provider, controlled by businessman Dan Adamescu, said Monday they want to inject the necessary RON425 million to the company in two stages and asked the financial watchdog ASF to revoke the special administrator KPMG.
The first tranche, worth RON150 million, would be paid by the end of the year, while the remaining RON275 million would be paid by September 30, 2016, according to the companies.
In February 2014, Romania’s financial authority placed Astra under special administration, suspended shareholders’ voting rights and appointed KPMG as special administrator.
Astra was required to raise its share capital by RON490 million in the next 12 months. So far, shareholders added RON65 million to the capital.
With a share capital of RON257.8 million, Astra is owned by The Nova Group Investments Romania SA – 72.754% and Epsilon Estate Provider SRL- 26.289%, both owned by local businessman Dan Adamescu.