Adamescu faces compulsory execution as petitioned by AVAS

The court froze the shares of Astra Asigurări (ATRA) and of Unirea Shopping Center (SCDM), controlled by businessman Dan Adamescu, through The Nova Group Investments, as part of a compulsory execution case following reports sent by the two companies to the Bucharest Stock Exchange.

According to market sources, The Nova Group has to pay penalties amounting to around 20 million RON (4.6 million euros) because it failed to follow through on an investment commitment made when Unirea Shopping Center was privatised. Representatives of AVAS (State Assets Resolution Authority) confirmed that the institution went to court petitioning for compulsory execution of The Nova Group.
According to reports sent to the Stock Exchange by Astra and Unirea Shopping Center, the value of the receivable is much lower than the market value of the two stakes. The two companies have not provided additional details on the case.
The 74% stake held by The Nova Group in Unirea Shopping Center is worth around 44.4 million euros on the stock exchange, while the 72.68% stake held in Astra Asigurări is put at around 20 million euros. The two companies' shares were suspended from trading yesterday at the request of the issuers.
Dan Adamescu is one of the wealthiest Romanians, with the two companies being among his most valuable assets. He could not be contacted for comment yesterday.