Court ruling: Carpatica Asigurari enters bankruptcy

Carpatica Asigurari will enter bankruptcy after a Romanian court ruling. The guarantee fund will start processing the over 16,300 compensations requests.

Each creditor can request a compensation of up to RON 450,000, the fund announced. Carpatica Asigurari is owned by Romanian businessman Ilie Carabulea. By 23 March 2017, the fund received from potential creditors a total of 16,372 payment requests, including payment requests for the newly opened cases as well as 11,338 requests to open damage files. The fund took over 27,270 damage cases from this insurer.

The Financial Supervision Authority (ASF) decided on 27 July 2016 to withdraw the licence of Carpatica Asigurari after the company entered insolvency, and forwarded the request to open bankruptcy proceedings.

Carpatica Asigurari had ended 2015 with a net loss of over RON 204.3 million and Carabulea did not manage to sell the company after ASF rejected the case of the only investor interested in the company, IIC consortium, based on the argument that the latter lacked the financial means to support the relaunch of the insurer.

Carpatica Asigurari was sent to court in 2014 for influence buying and bribery.