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Business Intelligence Euroins bankruptcy. CITR analysis, preliminary results

Euroins bankruptcy. CITR analysis, preliminary results

by Impetum Group September 7, 2023

CITR has completed the first stage in the management of the Euroins bankruptcy. In the approximately 3 months after its designation as the court-appointed liquidator of Euroins, the CITR team analyzed over 1,100 receivable statements which involved studying more than 350,000 documents, in order to draft the list of creditors. At the same time, the CITR team carried out an inventory of assets and initiated public tender procedures. The money was used to cover salary costs. Moreover, CITR analyzed and terminated approximately 1,000 contracts and submitted the contract concluded with EIG Re, whereby assets and cash were transferred from the company, to be analyzed by the delegated judge. Also, since the procedure was initiated, CITR has been coordinating over 25,000 litigations before national courts of law.

“In a procedure such as the one of the Euroins bankruptcy, the role of CITR as a court-appointed liquidator is to ensure clarity over the situation of the company and to understand the context in which the bankruptcy of the company occurred. At the same time, we are responsible for creating a framework for an adequate operation of the instructional relations that are necessary for the mechanisms which will lead to the successful closure of the procedure. As always, we will play this role in a transparent manner, as we are aware of the impact of the Euroins bankruptcy on the economy and on people,” Paul Dieter Cîrlănaru, the CEO of CITR, said.

Euroins debts

“The list of creditors contains, until now, over 1,100 receivable statements, and the due receivables amount, until now, is RON 600 million. The total exposure may reach RON 5 billion. A part of this amount represents potential debts pertaining to damages which have not been materialized yet and which are not certain,” Alina Popa, the coordinator of the team that manages the Euroins bankruptcy, said.

The following steps in the bankruptcy procedure are: the creditors’ meeting, completing the asset assessment, continuing the receivable recovery actions, asset capitalization, supporting in court the termination of the reinsurance contract concluded with EIG Re, drafting the report regarding the causes which led to the bankruptcy of the company, and publishing the final list of debts after any objections are tried in court.

Euroins was one of the largest insurance companies, with the highest weight on the RCA insurance market. In March 2023, Euroins owned approximately 27% of the RCA market. When the bankruptcy procedure was initiated, over 2 million Euroins RCA policies were in force, and 1.6 million are still valid.

Brief history:

On June 09, 2023, Bucharest Court ordered the initiation of the bankruptcy procedure of EUROINS, and CITR was designated as the court-appointed liquidator. According to its legal mandate, CITR manages the liquidation of the company starting from this moment mainly by the following directions: identifying the assets and liabilities of the bankrupt company and recovering the amounts which the company is entitled to obtain to offer them to its creditors – employees, aggrieved parties or business partners. The court-appointed liquidator is also responsible for identifying the causes of the bankruptcy and, if applicable, for filing cases with the delegated judge in order to incur the responsible persons’ liability.

Useful information for Euroins insured persons:

Insurance policies issued by Euroins cease, according to the latest legislative amendments, on December 08, 2023; December 07 is the last day on which they are valid. For the security insurance policies, the lates validity day is February 05, 2024. Until these dates, all Euroins insured persons must conclude new insurance policies.

Any aggrieved person may submit a compensation application for due amounts to FGA. The application must be submitted to FGA within 90 days after the date on which the bankruptcy judgment remains final, but no later than 90 days after the date on which the debt recovery right is instituted.

A payment application must be submitted to FGA to recover the insurance premiums payable by Euroins, for the period in which the risk was not covered, following the termination of insurance contracts.

Persons who have not received the notification on the initiation of the Euroins bankruptcy may still submit receivable statements, according to the law.

Persons who obtain a court decision against Euroins may submit a receivable statement with the Bucharest Court within 10 days after the date on which it is obtained.

About CITR

CITR has been the insolvency and restructuring market leader in Romania since 2008. With over 22 years of experience on the insolvency market and over 1000 projects managed until now, CITR annually manages assets worth EUR 1 billion, and annually distributes over EUR 100 million to creditors, in its mission to save the value of significant Romanian companies.

CITR is a member of Impetum Group, the first Romanian group dedicated to maximizing business value in any stage of a company's life, in order to create a positive impact on the economy.

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