Rompetrol decided last year to hike its capital by 1.97 billion lei (EUR626 billion) to RON4.41 billion by converting into shares 20.6 million bonds which had been issued by the company in favor of the state. The bonds were part of a 2003 conversion of Rompetrol’s state budget liabilities.
In October 2003, the government issued an ordinance turning Rompetrol’s debt into seven-year bonds worth $603 billion, including interest and penalties. The bonds were to be bought back by September 2010, but Rompetrol only bought back bonds for $71 million, and paid interest worth $24 million.
Following the conversion, the state has received a stake of 44.59% in Rompetrol Rafinare, while the Rompetrol Group’s holding in the refinery decreased to 54% from 99% previously.
The capital increase was registered with the Trade Registry in July 2011, after a court in Constanta County had found that Rompetrol had no outstanding debt left in favor of the state.
The state’s appeal is scheduled for September 22.