Romanian dairy producer Prodlacta Brasov (PRAE.RO) has entered insolvency procedures after a local court approved in November the request filed by the company’s legal administrators, Info-Dip Insolvency SPRL and RVA Insolvency Specialists SPRL, informs Mediafax. The two companies have also requested that the company’s shares be suspended from trading on the Bucharest Stock Exchange.
Prodlacta’s revenues have been on downward trend in the past couple of years. The company has managed to halve its costs in the first three quarters on this year, but its sales have collapsed by 130 percent y-o-y, reaching RON 16.6 million while its losses went up by 24 percent, to RON 3.4 million.
Last year the company’s business fell by 17 percent, to RON 48.5 million ( about EUR 11.5 million), company representatives explaining at that time that Prodlacta had to reduce the prices of its products due to competition pressure.
41.75 percent of Prodlacta is owned by employees, the Authority for State Assets Recovery (AVAS) owns 18.14 percent and 23.45 percent is held by Greek Olympus Dairy Industry which has opened this year a EUR 55 million greenfield dairy factory in Brasov.
Olympus has previously proposed social capital increases to Prodlacta’s shareholders, but the proposition was rejected.