Romanian Flamingo Files For Bankruptcy After ING Starts Foreclosure

Early-November, Flamingo signed a Memorandum of Understanding with ING Bank Romania, to restructure a EUR17.5 million loan, which was the first stage of the company's restructuring plan.

"Despite intense efforts, the negotiations with ING failed, as Flamingo's request for a supplementary debt reduction was refused, and the bank decided to start today the foreclosure of stocks in certain stores," Flamingo International deputy general manager Adrian Olteanu said Wednesday in a statement sent to the Bucharest Stock Exchange.

Olteanu added that throughout 2009, the company developed an ample reorganization program to overcome the current situation, including negotiations with financing banks for loans restructuring.

Flamingo International was established 15 years ago and is one of the major players with over 80 stores countrywide.

The company reported a consolidated turnover of RON269.1 million in the first nine months, down 48% compared with the similar period a year earlier. Its January-September losses stood at RON62.4 million, significantly wider than RON14.8 million in the same period of 2008.

The Bucharest bourse suspended for about 40 minutes the trades with Flamingo shares, after the company announced the filling for insolvency. Before suspension, Flamingo shares traded at RON0.0248, down 2.75% on the day.

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.