New declarations in the KPMG/ASF/Astra Asigurari scandal

Astra Asigurari’s special administrator, KPMG, is currently analyzing the company’s status quo and the immediate steps that need to be taken in order to continue payments to the clients and partners.

“At this time, the special administrator is analyzing Astra’s situations and is taking urgent measures to establish priorities, all the while consulting the Financial Surveillance Authority (ASF) and keeping the authority informed. Payment continuity for clients and business partners is the administrator’s primary concern. The first steps were already taken on Thursday, February 20. More details on Astra’s situation and the administrator’s activities will be communicated as per legal requirements over the next period”, according to KPMG representatives.

The auditor continues by stating that the financial recovery process will not have any serious implications for the company’s commercial activity. All of Astra’s policies retain their validity until thei expiration date, and the society will be obligated to honor the claims through their own assets, if the situation comes down to it, KPMG mentions.

While KPMG wants to clear the air through their press release, Astra’s main shareholder, The Nova Group led by Dan Adamescu, still believes that the process is an abusive one and ASF is overstepping its bounds.

TNG claims that it presented ASF with a plan of measures that would include a capital increase of RON 150 million for Astra Asigurari, after a merger with AXA Romania. However, the response to this proposal came after the financial recovery procedure was initiated.

“The ASF decision from 18.02.2014 (…) is Illegal, Excessive and beyond Legal Prerogatives. Astra adopted and presented a plan of measures that included, among other measures, a capital increase of RON 150 lei by way of a merger with the AXA Romania acquired society. Astra requested from ASF on several occasions to bear this plan in mind, but the response only came after the recovery procedure was initiated”, according to the TNG press release.