Romcab out of insolvency

Romcab Targu-Mures, a producer of electrical cables and conductors, controlled by businessman Zoltan Prosszer, announced it was out of administration in the wake of a recent ruling of Mures Commercial Court. Only a small percentage of companies undergoing insolvency proceedings succeed in saving themselves from bankruptcy. Romcab's exit from reorganisation comes a year after a long row of insolvencies in the economy, particularly amid companies controlled by Romanian entrepreneurs. Romcab went insolvent in 2004, after guaranteeing a loan of its former majority shareholder, Paneuro group, a period during which it managed to cut its debts from 45m RON to 13.1m RON (3.1m euros) by late 2009. In the past six years, Romcab has not benefited from any kind of financing and has struggled in its relationship with clients and suppliers, say the company's representatives. Nevertheless, the company has managed to end the past five years in the black. As an advantage, the company did not have to pay late charges for contracted loans during this period.