“The Romanian High Court of Justice and Cassation rejected the second appeal filed by Fondul Proprietatea against the decision issued by the Bucharest Court of Appeal in the file regarding Romarm – Uzina Mecanica Bucuresti branch,” Franklin Templeton Investment Management, administrator of the fund, said in a statement Friday.
The court’s decision is irrevocable, Franklin Templeton said.
In 2009, Fondul Proprietatea lodged with the Bucharest Court a claim against Uzina Mecanica requesting the latter be compelled to register with its shareholders’ registry the ownership of the fund in relation to 2.95 million shares valued at over 20 million lei (EUR4.6 million) of the paid share capital.
The shares were transferred to the state in exchange for a contribution in kind, but the Romanian authorities failed to pay Fondul Proprietatea the due share capital, so the shares were deemed as unpaid.
All unpaid shares are blocked at Trade Register, Central Depositary and Romanian National Securities Commission, Franklin Templeton said.
“Franklin Templeton will take all necessary measures on behalf of Fondul Proprietatea to recover the unpaid capital amounts from the Romanian State. If Franklin Templeton cannot recover the value of unpaid share capital without starting a case, we will propose the shareholders the share capital decrease with the value of unpaid shares,” the statement noted.
Fondul Proprietatea was set up in 2005 to compensate Romanians whose properties were seized during communism. The fund has total assets worth RON14.6 billion and owns shares in over 80 companies.
On the Bucharest bourse Wednesday, Fondul Proprietatea closed down 0.48% to RON0.418 a share, close to the lowest price registered since listing in January.