American Company fails to recover debts from Moldovan enterprise

The USA-based “Virtek” LLC is failing in its attempts to recover debts worth USD 735,000 from “Budjak Gas” JSC, despite the Economic Court of Appeal’s (ECA) judgment which compelled in March the latter to pay off the debts due. Sergiu Ciorba, “Virtek” representative, and David Brodsky, president of an international audit company, told Thursday November 9 a news conference that the numerous petitions submitted to Moldovan authorities so as to get the court order executed were left unanswered. Meanwhile, a furniture firm called “Liutinos” Ltd became the fiduciary administrator of “Budjak Gas”. The audit company’s learned from the National Securities Commission that Liutinos “has no right to administrate the property handed over, until a proper authorization is issued.” Despite this, Brodsky says, this firm is paid over the odds, although 82% of “Budjak Gas” shares belong to the state. According to Brodsky, ECA has judged to accept for examination Virtek’s request on initiating insolvency proceedings against “Budjak Gas”. The Court also appointed Alexandru Muravschi as interim administrator of the debtor company, sequestered its property and business correspondence, and decided to suspend its historical debts due to the national public budget. Although, ECA decided on 26 October on the insolvency of “Budjak Gas”, the claimants say that not even this court order was executed. Moreover, nor the interim representative, neither the representatives of the audit company and the American enterprise were granted access to the facilities of “Budjak Gas”, which are guarded by armed men. Sergiu Ciorba says that at the moment the largest distributor of liquefied gas from southern Moldova halted its activity and its over 100 employees are left without jobs. He maintains that “Virtek” doesn’t wish for Budjak Gas’ failure, offering instead financial support and debts restructuring schedules, but this offers were declined. David Brodsky believes that “Budjak Gas” might become a dangerous precedent, proving that someone’s unilateral decision can be above the Law. He says the company is backed by an influent person willing to take over the company, defying legal provisions. Under these conditions a number of investors might change their mind from coming to Moldova, Brodsky thinks, adding that the company he heads will not offer any longer guarantees that the Republic of Moldova is a law-based state.