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Bucharest
December 5, 2020
ECONOMY FINANCE&BANKING

Astra Asigurari’s bankruptcy, demanded by Financial Supervisory Authority

The Financial Supervisory Authority’s (ASF) Board has demanded on Wednesday that Astra Asigurari, currently under trustee, should file for bankruptcy and has decided to rescind its activity permit, ASF President Misu Negritoiu announced on Wednesday.
“The ASF Board met today and analyzed Astra’s situation on the basis of a report filed by KPMG. (…) According to the conclusions of the report, the three legal conditions that define a state of insolvency are met,” Negritoiu pointed out.
According to a communiqué issued on Tuesday by The Nova Group Investments Romania, one of Astra’s shareholders, and quoted by Agerpres, Astra’s majority shareholders were planning to increase the company’s capital by RON 425 M within approximately one year as part of a financial recovery plan according to which the insurance company’s trustee arrangement should be terminated.
The second capital increase stage entailed by Astra Asigurari’s recovery plan ended on August 19, however no major capital subscriptions were registered and no requests for the extension of the capital increase process were filed by interested investors, as revealed by the information relayed on Wednesday by the representatives of KPMG, the company’s trustee.
ASF decided the start of Astra’s financial recovery procedure through trust arrangement in February 2014, appointing the KPMG Advisory consulting company as trustee.
Astra’s recovery plan, drafted by KPMG Advisory, was approved by ASF on 7 April 2014 and entailed as the main measure meant to restore precautionary indicators the hiking of registered capital by a sum of up to RON 490 M within an initially estimated period of approximately one year.
Astra Asigurari is owned by The Nova Group Investments Romania and Epsilon Estate Provider (99 per cent of the shares), companies owned by businessman Dan Adamescu.

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