The Bucharest tribunal yesterday admitted the company’s request and opened the general insolvency procedure. The decision comes after STB piled on debts of over RON1.5 billion, with the largest part to the state budget and suppliers.
“(…) We will reorganize the company with over 9,000 employees, there will be fundamental structural changes, cost efficiencies, tariff adjustments,” said Remus Borza, chairman of Euro Insol.
The company was designated as interim legal administrator, together with Turmac Insolvency SPRL and Ceres Insolv SPRL, as requested by creditors Ramco, Vidanj Activ Solutions, Kynita SRL and Ganzait Compressor Tehnic.
STB is one of Bucharest’s largest public companies both by headcount and turnover. It reported net profit of RON327,000 last year and each year since 2014, but it does not fund its activities exclusively from tickets and subscriptions, but also gets subsidies.
(English version by Catalina Apostoiu)