Insolvent cable producer Romcab claims it secured EUR 26 mln financing

Romanian cable producer Romcab Targu Mures (MCAB), currently under judicial reorganization, claims that it has secured a EUR 23 million financing after a local court confirmed its reorganization plan in February.

The loan has a maturity of six years and a grace period of four years, during which the company won’t have to make any payments. Romcab hasn’t mentioned who the lender is.

The company will be able to use the money only after the confirmation of its reorganization plan becomes final and it finalizes the negotiations with the creditors involved in its insolvency procedure.

According to the reorganization plan voted by the company’s biggest creditors in December 2020, Romcab will repay only RON 165 mln (EUR 33.8 mln) out of the total debts of RON 1.12 bln (EUR 230 mln) it had when it went into insolvency.

The company produces electrical and optical cables for various industries such as automotive, energy and telecom. It almost doubled its revenues in 2020 compared to 2019, to RON 892 mln (EUR 183 mln), and halved its losses to RON 70 mln (EUR 14.4 mln), according to the preliminary results.

Romcab’s shares returned to trading on the Bucharest Stock Exchange at the beginning of March, after their trading was suspended for four years. The company has a market capitalization of RON 35.7 mln (EUR 7.3 mln), as of March 25.

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