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News from Members Grup Feroviar Român: HCCJ definitively rejects the Ministry of Transport’s claims for the payment of the EUR 10 million letter of credit submitted for participating in the CFR Marfă privatization in 2013

Grup Feroviar Român: HCCJ definitively rejects the Ministry of Transport’s claims for the payment of the EUR 10 million letter of credit submitted for participating in the CFR Marfă privatization in 2013

by Grampet Group February 18, 2021

Website grampet.ro/

The High Court of Cassation and Justice has definitively rejected the Ministry of Transport’s claims regarding the payment of the EUR 10 million letter of credit submitted by the private operator SC Grup Feroviar Român SA (GFR) for participation in the privatization process of the National Railway Freight Company - CFR Marfă SA, in 2013.

"We are pleased to see a final resolution in this case, which confirms that Grup Feroviar Român acted in good faith and in line with legal provisions throughout the entire privatization process," says Gruia Stoica, President of GRAMPET Group - Grup Feroviar Român. "It is unfortunate that the Ministry of Transport chose to take this fight for almost 7 years, ignoring the evidence that the execution of the letter of credit could only be done within the legal provisions and in strict compliance with the formal and substantive requirements under which it had been issued, a fact that has been confirmed by all the 3 courts resolving this dispute”.

In order to participate in the privatization, in June 2013 Grup Feroviar Român submitted a letter of credit issued by Raiffeisen Bank International AG, accompanied by the confirmation of authenticity issued by the Import Export Bank of Romania - Eximbank.

In September 2013, the Romanian State, through the Ministry of Transport, and Grup Feroviar Român, as buyer, signed the contract for the acquisition of 51% of CFR Marfă shares. Eventually, the privatization process failed because the creditor banks of CFR Marfă did not give their consent for the change of the shareholders’ structure. Consequently, the contract was terminated, and the buyer - not being guilty for the privatization’s failure - was relieved of any incumbent obligation, including the payment of the EUR 10 million credit.

In addition, there were no reasons for the financial sanction of Grup Feroviar Român, which had fully fulfilled its obligations and made every effort to successfully complete the privatization process.

In 2017, the Ministry filed a lawsuit against the financial institutions Eximbank and Raiffeisen International Bank, with Grup Feroviar Român joining as intervener (capacity through which it can participate in the process, formulating its own claims and thus preventing a possible subsequent lawsuit on the same case).

 

 

About GRAMPET Group

Established almost 20 years ago, GRAMPET is today the largest private rail freight and logistics operator in Romania and Southeast Europe. Its 16-company structure is strategically designed to span the entire chain of rail transport solutions and products, thus offering clients an integrated experience at the highest level of competence: freight railway transport, building, repairs and upgrading of rolling stock, spare parts production, lease of rolling stock, freight transhipment, logistic services, as well as innovative IT solutions for railway operators.

Its flagship company Grup Feroviar Român (GFR) is one of the main rail freight operators in Romania and Southeast Europe. Currently, over 20% of traffic is international, with GFR offering complex logistic solutions to rail sector customers. GFR is a member of all representative international organizations and has cooperation agreements with both state railway operators (BDZ Cargo, UZ, CFM, PKP Cargo, ZK, RCH, HZ Cargo, ZBIH) and private railway operators from Bulgaria, Hungary, Slovakia, the Czech Republic, Poland, Austria, and Germany.

The Group’s companies Reva Simeria, Electroputere VFU Pascani, Reloc Craiova, and Electroputere VFU Craiova account for an important share of the Romanian rolling stock repairing market.

In parallel, the group carries out an intense activity of research and development of technical solutions meant to offer clients a transparent and real-time experience of services to which they have access. Thus, the GRAMPET Group launched an e-client portal for the first time in Romania, which facilitates the management of relations with client companies, from placing an order to invoicing.

Its subsidiary Roserv Oil, which took over the industrial platform of the RAFO Onești refinery in the summer of 2020, focuses on the national development of logistics terminals both on the container side and warehouses for petroleum products.

Further details are available on the official webpage – https://grampet.ro/.

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