Court says yes to Impact insolvency over EUR 300,000 debt, developer appeals decision

Local real estate developer Impact has entered insolvency after one of its contractors, Romconstruct Ploiesti, has asked for its insolvency in court over a debt of RON 1.3 million (around EUR 300,000). The real estate developer says it will appeal the court decision and qualifies the proceedings as unjustified and hostile. The company's balance sheet filed in court shows that Impact is paying its suppliers much higher amounts and that the firm is not by far insolvent, Impact wrote in a statement sent to the Bucharest Stock Exchange, where its shares are trading. Impact says it has RON 10 million in its bank accounts, and that it receives EUR 4 million of cash every month. The real estate developer says the amount asked by Romconstruct is the subject of three judicial files in the Prahova Court. The biggest shareholder in Impact is Dan Ioan Popp, head of the administration council and general manager, with 22.06 percent of the shares. Carmen Sandulescu owns 11.61 percent of the shares. Franklin Templeton, through Templeton GIT Emerging Markets, owns 6 percent of the company's shares. Romconstruct Ploiesti is owned by Neculai Rosu, who owns 95.49 percent of the shares.