EBRD will appeal imposed external administration of assets of Moldova’s Danube Logistics SRL

By Olga Rosca

The European Bank for Reconstruction and Development (EBRD) intends to fight a legal decision to impose external administration over the assets of Danube Logistics SRL, the operator of Giurgiulesti International Free Port in Moldova.

The Bank is deeply concerned by the order of a bailiff in Chisinau on 25 February and will continue to seek to protect its rights as a senior secured creditor.

The EBRD is currently the largest creditor of Danube Logistics SRL, as well as the primary economic beneficiary of Danube Logistics Holding BV’s shareholding in Danube Logistics SRL.

The EBRD considers that the appointment of an external administrator by the bailiff interferes with the running of the company, having a direct negative impact on its ability to continue to operate and repay its debts, as well as conflicting with EBRD’s legitimate interests as a lender holding security over the shares in Danube SRL and as an economic beneficiary of those shares.

Separately, the EBRD has joined proceedings in several court cases centred on Danube SRL’s ability to make payments to its parent company, upstream dividends and/or sell its shares. None of these cases are founded on monetary claims against Danube SRL or the company’s ability to manage its day-to-day business affairs, but revolve around a personal claim of Bemol Retail SRL, a third party, on a former general manager of Bemol.