Navol Oltenita placed under receivership

Navol Oltenita shipyard’s shareholders approved the initiation of receivership procedures for the company, brought about by its cash flow problems. Receivership is a procedure employed by a company that is unable to repay its debt, in an attempt to reorganise its business. The proposition came from the majority shareholder of SIF Muntenia itself and was unanimously endorsed by the shareholders attending the General Meeting last week. Navol has defaulted on its debt because of the poor financial results of the last few years and due to its failure to find new streams of cash. Banca Comerciala Romana (Romanian Commercial Bank – BCR), its main funding supplier, has recently rejected a number of loan applications, some of which targeted the production currently in progress. ZF