The Bucharest Tribunal on Tuesday, August 18, rejected public transport operator STB\u2019s request to enter insolvency proceedings because the company did not submit all the documents required by law. Mayor Ciprian Ciucu called the decision \u201cunexpected\u201d and said he hoped the company would appeal.<\/p>\n
The case was registered last Thursday and resolved at its first hearing on Tuesday. The tribunal said STB\u2019s application was rejected because the company, acting as the debtor, had failed to submit all the documents required under Romania\u2019s insolvency law, Agerpres<\/a> reported.<\/p>\n The ruling can be appealed within seven days of being communicated.<\/p>\n The court also separated the insolvency applications filed by creditors in the same case and ordered their transfer to another case. Nineteen companies are listed as creditors, including Astra Vagoane C\u0103l\u0103tori, Tinmar Energy, Electroputere VFU Pa\u0219cani, Romprest Servicii Integrate, and Daimler Truck&Bus Romania, according to Agerpres.<\/p>\n \u201cThe court rejected the insolvency request filed by STB. The reason? Missing documents,\u201d mayor Ciprian Ciucu wrote on Facebook.<\/p>\n \u201cI spoke with STB\u2019s management, and they swear they checked them seven times and submitted everything, that the application was complete. I will check. Five indexed case files were submitted, and no one in the courtroom raised the issue of any missing documents,\u201d he added.\u00a0<\/p>\n Ciucu also said STB had taken the correct step by asking the court to open insolvency proceedings and argued that the process was necessary to rescue the company.<\/p>\n According to the mayor, Bucharest\u2019s surface public transportation system accounts for 34% of the City Hall\u2019s annual budget. When operating expenses are combined with STB\u2019s debts and penalties, the total is equivalent to the municipality\u2019s entire budget, he said.<\/p>\n \u201cFor a public service to be provided to the population, the first condition is that it must be affordable from a budgetary perspective. Public transportation was becoming increasingly difficult to afford,\u201d the mayor stated.<\/p>\n According to him, the insolvency would prevent the accumulation of further penalties and debts and allow the company to undergo restructuring and recovery.<\/p>\n\n In mid-July, Ciprian Ciucu said STB had debts exceeding RON 1.6 billion and described the company as being in a state of \u201cundeclared insolvency.\u201d<\/p>\n irina.marica@romania-insider.com<\/p>\n