Bucharest, September 27th, 2017. The drilling company DAFORA Mediaş (stock exchange symbol DAFR), which filed for insolvency, after accumulating a total debt of approximately 300 million Ron, and registering negative equity, drew the attention on BVB during the first three days since resuming trading.
Today, DAFORA registered a market capitalization of approximately 10 million Ron. Suspended from trading when the insolvency proceedings were initiated, on June 19th, 2015, the company resumed trading on September 25th, 2017, after the restructuring plan was confirmed. During the first three days, the company’s value shows a spectacular and sustained increase of approximately 50% on the Bucharest Stock Exchange. During today’s trading session, over one million eight hundred thousand shares were traded by 1 pm, for a price up by 13% vs. the previous day.
The investors regained their interest in DAFORA after the insolvency practitioner, CITR, managed to restructure the company as part of the insolvency proceedings, significantly increasing its value.
Irina Mișca, manager CITR: Today, we had a confirmation on the Stock Exchange of the value we successfully added to DAFORA company. We are happy to see that the investors are interested in this business and have declared their intention today to acquire 12 million shares in this company after seeing its potential for constant growth. And this is probably due to the measures we proposed in the company’s restructuring plan, solutions adapted specifically to the needs of this business and tailor-made to its growth objective.
CITR proposed before DAFORA’s creditors a solution to save the value accumulated in the company, mainly generated by the human capital, the experience gained, the quality management and the internationally recognized certifications. For this purpose, the insolvency practitioner, along with the company’s management team, drafted a plan to stabilize, operationally restructure and relaunch the company’s business. The main measures refer to obtaining funds, during the restructuring period, for the current operations (financial leasing for the acquisition of a deep-water drilling machinery, factoring and good performance bonds) and strengthening the activity by concluding contracts with strategic partners. Furthermore, new markets and projects were prospected, in India, Iran and Kazakhstan. Specific management measures were also implemented to perform the necessary investments to satisfy customer demands, surplus assets were capitalized, and the staff structure was adapted to the scale and actual number of drilling works. Thus, the headcount was reduced from 396 to 258.
The restructuring project gained the trust of the company’s creditors who approved the plan. Consequently, DAFORA resumed trading on Bucharest Stock Exchange three days ago with a price/share of 0.0071 Ron.
Vasile Godîncă-Herlea, CEO CITR – Although the company is undergoing insolvency proceedings, the increase of the stock price confirms the market viability of the restructuring model proposed by CITR. The confirmation of the restructuring plan by the court, which allowed the resumption of the trading, and the efforts made to stabilize, restructure and relaunch the company are all part of our professional model: CITR believes in the recovery of Romanian companies and puts all its resources into saving the economic value by offering a second chance to businesses in distress.
DAFORA continues to consolidate its position on the national market, and to perform drilling works within and outside Romania by concluding new contracts with external beneficiaries. Furthermore, the company aims to expand its drilling rig fleet by acquiring new equipment, resize its debt based on the real reimbursement capacity, taking into consideration the oil and gas market, and access additional funding sources, considering the increasingly stable position of the company with the final confirmation of the restructuring plan.
CITR, leader on the Romanian market of insolvency solutions, has distributed over EUR 200 million to creditors over the past 3 years.
With over 16 years of experience, the company was established in order to restore the health of companies in distress and reintegrate them in the economic cycle, using innovating restructuring mechanisms.
CITR is closer to customers due to its 9 subsidiaries located across the country and provides customized solutions through 120 experts part of the multidisciplinary case teams, while also supporting struggling entrepreneurs by providing a comprehensive expertise, acquired after managing more than 850 cases in all business areas. Furthermore, it manages the most comprehensive asset sales platform, sales.citr.ro.
CITR is part of CITR Group, the first group of companies in Romania specialized in customized remedies for companies in economic distress.