Meter producer Contor Group Arad (CGC), which raised 3m eurosfrom the Bourse through an IPO in early 2008, has filed forinsolvency.
Though it got around 3m euros (11.78m lei) from investors inMarch 2008, the company has now come to a situation where it can nolonger pay its debts and its majority shareholder, Tudor Caracioni,filed for insolvency to gain time to restructure his business.
The company accounts for its decision by the fact that itsbusiness has constantly declined, now being in a position of nolonger being able to pay its debts.
"The current crunch in the civil and industrial constructionindustry, a field where most of the company's partners operate, ledto plummeting monthly revenues. As a result of the continuouslyfalling orders from contractual partners, the soaring commoditiesprices, as well as connected services, the company is coping with asevere liquidity shortage, being now in the situation of constantlyregistering debts, which is hindering it from tapping new markets,"reads the report the company sent to the Bourse.
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