The company Prospectiuni S.A.was declared insolvent, at its own request, based on a sentence announced on Tuesday by the Bucharest Court.
The company Euro Insol, controlled by Remus Borza, was appointed legal administrator.
Prospectiuni is Romania’s second major company specialized in services for the oil industry, after Dafora Medias, which becomes insolvent. Dafora entered insolvency in June 2015.
“By the decision pronounced on April 5, 2016, the Bucharest Court approved the request filed by Prospectiuni SA and initiated the procedure of insolvency destined to restructure the company. By same decision, Euro Insol was appointed legal administrator”, the press release of the insolvency company shows.
Prospectiuni has registered losses of RON 30 million last years and a double value of losses the year before, under the circumstances that the demand for geophysical and geological services in the oil field drastically decreased due to the fall in the international price of oil.
The new legal administrator wants to revive the activity of the company by finding new assignments with Gulf states.
“With a more dynamic, involved and responsible management, and assuming a greater mobility in the commercial side, Prospectiuni will deal with the temporary cash flow crisis it is presently confronted with by gaining access to new contracts in areas that have strong hydrocarbon-based industries”, Remus Borza, the lawyer controlling Euro Insol, declared, as quoted in the press release issued by the insolvency company.
Borza has made a visit to Kuwait during April 1 – 4 and claims having had encounters with officials in the Ministry of Petroleum and in the Kuweit state-owned oil-processing giant, Kuwait Oil Company, whom he had presented an integrated offer of services from behalf of a group that included Prospectiuni SA, Vulcan SA (another company controlled by Ovidiu Tender, also insolvent) and Uztel Ploiesti.
“This consortium of Romanian companies has tremendous chances to earn contracts worth several dozen millions of dollars in Kuwait starting as early as 2016”, Borza pointed out.
Prospectiuni SA (PRSN) is listed at the Bucharest Stock Exchange and has a market value of RON 25.4 million (EUR 5.7 million) at its last transaction price, of RON 0.0354. The company is controlled by businessman Ovidiu Tender, through his company Tender SA Timisoara, that owns 55.7 per cent of the shares. SIF Muntenia has an equity stake of 11.8 per cent.
The price of Prospectiuni shares has lowered by 41 per cent in the last six months, from an initial value of RON 0.06 per share, on October 5, 2015.