The road gets rockier for Romania's Asphalt King - Romstrade enters insolvency

Romstrade, the self-proclaimed "Romanian constructor of European roads" controlled by businessman Nelu Iordache, also known as the Asphalt King, has just entered insolvency, according to a decision of the Giurgiu Tribunal. The decision came following a petition filed by company Agroindustrial Construct, based in Iasi and insolvency firm Casa de Insolventa Transilvania (CITR) has been appointed as Romstrade’s provisional judicial administrator with immediate effect. The court has also set a timetable for Romstrade’s creditors, which includes a deadline for the submission of applications for the acknowledgement of receivables on January 25, 2013 and a deadline for the communication of the preliminary list of creditors for February 15 next year. Romstrade’s creditors are to hold their first meeting on February 21, 2013. Challenges to the preliminary list of creditors can be filed by March 4, next year, whereas the end date for drawing up a final list of Romstrade payables is March 20, 2013. Several applications for the acknowledgement of Romstrade’s insolvency are on the court docket. Moreover, this is not the only one of Iordache’s businesses that has fallen into financial disgrace. The court has also issued a decision to put Romstrade Logistic Express (formerly Direct Aero Services), an aerial taxi company, into insolvency and placed it under the provisional judicial administration of the same firm CITR. This time, it was DHL International Romania that filed the petition opening the way for the insolvency ruling. This news follows shortly after the Romanian National Company of Motorways and National Roads (CNADNR) served two termination notices to Romstrade, suddenly striking off the contractor’s expected revenue list almost EUR 54 million in road modernization and construction work. Iordache’s end of year troubles pile on, with 29 days of preventive jail time to be served on accusations of an alleged EUR 5.5 million EU funds embezzlement beginning with December 2, as well as the prospect of other legal consequences due to suspicions of money laundering and forging documents. Ioana Jelea ioana.jelea@romania-insider.com (photo source: sxc.hu)