CSA launches bankruptcy procedures for Euroasig

The Insurance Supervision Commission (CSA) has decided to start bankruptcy procedures for Euroasig, a small company with turnover of around 3m euros last year, as the financial situation of the insurer could not be turned around. Euroasig, an insurer controlled by companies part of Balkan Petroleum (BKP) group, whose majority shareholder is businessman Marian Iancu, was placed under special administration by CSA this summer as its solvency and liquidity indicators deteriorated. Special administration is the last move the supervisory authority can make ahead of declaring bankruptcy. To rescue the company, the shareholders were supposed to carry out a capital increase operation of almost 3m euros, but the operation did not take place. The last solution considered was selling the company to a foreign investor. “We negotiated with 4 potential bidders from France, Israel and two that are also present in Romania, Broadhurst investment fund and Grawe Asigurari. In all these negotiations the question of the object of transaction, namely the shares owned by BKP, was raised. (The shares were levied under a writ of attachment because of a trial between BKP and Rafo Onesti). The shares could not be unfrozen in time for the deal to be sealed, the company spent its last resources and came to bankruptcy,” stated Nicolae Crisan (photo), the special administrator of the company appointed by CSA. Crisan is also the former chairman of the Insurance Supervision Commission.