Romanian firm Rottco Consult, one of the top 10 players in the Romanian fuel distribution market, has initiated the procedures for starting insolvency proceedings.
The measure was taken as a result of a complex market situation with a significant negative impact on ensuring the flow of working capital, such as: non-payment and / or delays in payment of debts from debtors plus debtors who entered the procedure insolvency / bankruptcy; delays in prolonging committed credit lines; early repayment of loans, as requested by bank creditors; unilaterally reducing payment times from some suppliers; suspension after the submission of the bidding offer of the acquisition of the majority stake of the company by an investor.
"We have taken this measure as a result of the late payment of some customers. This, correlated with the other causes, has left us with no working capital, and the cashflow is heavily unbalanced, and the company is virtually in a financial bottleneck and implicitly incapable of honoring turn, payments, "says Paul Pop, General Manager Rottco Consult.
At this time, the company does not register debts to the tax office, and most of the debts to suppliers are covered by warranty letters. The company has to collect receivables of over 10 million lei from debtors who are in forced execution proceedings, claims that cover entirely the current debts that can not be honored by ROTTCO.
At the end of 2016, the company started the SYNERGY by Rottco project, which proposed to bring independent gas stations into a network. The Rottco Synergy Card system was functional in over 115 independent gas stations in Romania and was the target of investors, but the company could not sustain its funding for further development.