Romanian prospecting company Prospectiuni Bucuresti, controlled by local investor Ovidiu Tender, has entered insolvency.

The Bucharest Court approved the company’s insolvency request and appointed local firm Euro Insol as judicial administrator.

Euro Insol, founded by Romanian lawyer Remus Borza, is also the legal administrator of state-owned power producer Hidroelectrica. It also manages other big insolvent companies in Romania, such as energy equipment producers UCM Resita, Uztel Ploiesti, and Vulcan Bucuresti. Vulcan is also controlled by Ovidiu Tender.

Prospectiuni used to be Tender’s most profitable company, but its business has been impacted by the steep drop in oil prices, which determined many oil companies to cancel their exploration projects. The firm has over 750 employees.

In 2015, the company posted EUR 5.8 million losses as its turnover went down by 37%, to EUR 43 million, due to drop in the price of the oil barrel. The company had total debts of almost EUR 22 million to banks, employees and budgets. Its ongoing contracts amount to over EUR 40 million.

editor@romania-insider.com