The proposition will be discussed by shareholders on November 24. In addition, the shareholders will discuss using one or several assets to guarantee the loans.

At the end of September, the company took a EUR5 million loan form BRD, to invest in a cogeneration plant delivered by Japanese group Kawasaki.

Prefab posted revenue of 38.7 million lei (EUR8.89 million) in the first half of this year, down 9% on the year. Net profit dove to RON487,000, from RON3.15 million.

The company is 81% owned by board president Marian Petre Milut, while SIF Muntenia (SIF4.RO) holds a 13% stake.

Prefab shares were last traded on the Bucharest Stock Exchange Tuesday, at RON1.68, down 13.4% on the day. (EUR1=RON4.3529)