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Creditors unanimously approved the reorganization plan for Prospecţiuni SA

26 September 2017
Exploration & production

On Monday, Assembly of Creditors for Prospecţiuni SA decided unanimously to approve the reorganization plan proposed by the judicial administrator Euro Insol. The plan was approved by all five categories of creditors: secured, wage claims, budgetary creditors, indispensable and chirographs.

The reorganization plan provides for the full payment of debts totaling 93 million lei to creditors over a period of 3 years, according to the Definitive Debt Scheme. During the course of the plan, Prospecţiuni count on revenues of 747 million lei and a gross profit of over 80 million lei. The reorganization plan provides for the payment of receivables both from the cash surplus obtained from the core activity and from the capitalization of some real estate assets that are not needed for the current activity, amounting to 50 million lei.

The judicial administrator proposed payment of salary receivables more quickly, namely within 18 months, compared to 36 months, the period of implementation of the plan, taking into account social reasons; this was accepted by all the creditors. Also, amounts due to third parties, representing food and other social benefits, will be paid in the first quarter of the plan.

Restructuring measures for Prospecţiuni were implemented by Euro Insol since the observation period, immediately after taking office as a judicial administrator on April 5, 2016, for creating the premises for successful implementation of a reorganization plan, Euro Insol says. These included measures to close unprofitable non-core business lines, make the Logging division more profitable, boost business activity for core business, restructure the organizational chart, and strictly control all cost categories. “As a result of these measures, the turnover increased by 65% and the company’s losses decreased by 95%. Thus, from a loss of 23.8 million lei in the first semester of 2016, there was a loss of only 1.2 million in the first half of 2017, with real chances to close the financial year with profit”, states the judicial administrator said in a press release.

Since the beginning of the year, Prospecţiuni has signed contracts for more than 120 million lei for 2D and 3D geophysical data acquisition and logging services with Romgaz, OMV Petrom and AMROMCO. The company expects to conclude even more contracts by the end of the year, worth for more than 130 million lei. In order to honor these contracts, Prospecţiuni will hire more than 1,000 specialists and workers by the end of the year, with the total number of employees to exceed 1500.

Prospecţiuni SA is a 100% Romanian company, active for more than 65 years on geological and geophysical services market, being the only such Romanian company and one of the largest in South-Eastern Europe, a pioneer throughout this period and a real school in the field of geological and geophysical research.

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