The bank has already notified the retailer that it will start taking over stocks from its stores to recover some of the debt. Flamingo will try to reorganize its business and protect itself from creditors. The retailer hopes that the EUR 7 million it should raise after the bonds issuance started on December 3 will help it pay some of the debt and keep the company running. The amount would have been enough anyway should the retailer have reached an agreement with ING Bank. Flamingo runs stores under the Flamingo and Flanco brands.
UPDATE: The Bucharest Court of Justice has approved Flamingo’s insolvency request, which has stopped the foreclosure on the company’s assets started by lender ING Bank. Casa de Insolventa Transilvania is in charge of the judiciary reorganization process for Flamingo. The process doesn’t interfere with the activity of Flamingo’s stores, which will stay operational, according to the retailer. The insolvency covers all the companies in the group, Flamingo International, Flanco International, Flamingo Computers and Flamingo Distribution Center. The company’s shares have been stopped from trading on the Bucharest Stock Exchange.
Flamingo’s main shareholders are Daniel Cinca, which owns 25.2 percent of the shares, while Dan Adamescu, owner of Unirea Shopping Center, controls 17.5 percent of the company. Alexandru Ion Tiriac holds a 5 percent participation, while Flanco Holding has under 5 percent of the shares. Investment fund QVT has recently sold its 22 percent participation to Midfair Management Services, a company also controlled by Dan Adamescu.