„Apa-Canal Chisinau” organizes additional share issuance to pay external debts

SA „Apa-Canal Chisinau” organizes an additional share issuance in order to reimburse the credit debts to the European Bank for Reconstruction and Development (EBRD), and Chisinau Municipal Council (CMC), the single stakeholder of the enterprise, will subscribe to this issuance. CMC took a decision in this sense of Thursday meeting, 8 June. According to the decision, CMC will subscribe to the additional issuance to purchase 140,000 shares, in order to increase the enterprise’s statutory capital, and also to accumulate necessary finances for paying the spring tranche of the credit taken from EBRD and used for re-establishing water supply pipes of the capital. Previously, ACC economic manager Ion Burdila announced that this method is used as the enterprise is in a very critical financial situation and, at the moment, does not have available money. Firstly, ACC proposed to launch an additional issuance of 500,000 shares, in order to pay to EBRD the tranche worth 14 million lei and certain accumulated debts, as well as for improving to some extent the financial situation of the enterprise. The commission on budget, economy, finance and local public patrimony of a CMC has reduced the value of the package to 140,000 shares, on the ground that purchasing of half a million of shares would be a tough burden for the municipal budget. The specialized commission approved the decision draft with the condition that the water supplier presents until 1 August solutions for settling the financial crisis. In order to purchase the shares, CMC decided to take a bank credit from BC „Victoriabank”, following to reimburse it from the municipal budget for 2007, taking into consideration the grace period of 6 months provided by banks. At the beginning of 2005, the municipality purchased from ACC, shares of about 30 million lei, of them being reimbursed the tranches for April and October 2005 of EBRD credit, amounting to 23,9 million lei, and certain bank credits about 6 million lei were reimbursed as well. Chisinau Municipal Council is the single stakeholder of SA „Apa-Canal Chisinau” and owns 5.047.451 ordinary shares.