Romanian Montero petitions for insolvency

2010-02-23

Montero, one of the largest drug distributors in Romania, has petitioned the Bucharest Court to recognise its insolvency, according to The Capital. Montero has not disclosed the size of its debt, saying only that 60% of its total liabilities should be paid to suppliers and the other 40% to banks. The creditors who petitioned for Montero’s insolvency include: Worwag Pharma, Prisum International Trading and Seder. The court should assign an external administrator who will take control of the company. Montero also expects the court to approve its reorganisation plan, which aims to recover its operations and pay off the debts over the next two years.
The distributor faced its first financial difficulties in mid-2009, when several of its suppliers, including Bayer Schering Pharma, Alfa Wassermann, Plantovorel and Alix Avien, petitioned for its insolvency but later withdrew their claims.
According to the Romanian Finance Ministry, in 2008 Montero reported sales revenues of RON 274.2m (€74.5m) and a loss of RON 13.5m (€3.6m). The total debt of the company at the end of 2008 was RON 180m (€50m).