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another private insurance company is facing a bankruptcy

29 December 2009 / 10:12:30  GRReporter
4527 reads

The supervisory body of the private insurance companies made a decision that the insurance company Commercial Value (owned by Advantage Capital – the company Aspis who went in bankruptcy in October) has to increase its share capital with 79 million Euro in very short terms, because otherwise it might loose its license in Greece. According to the board of directors of Advantage this could harm the commercial image of the company and would affect the interest of its potential buyers.

Dimitris Vidalis, a member of the board of directors of Advantage Capital and former executive director of Commercial Value stated that the corporation has a capital of 91 million euro. Commercial Value requires from the supervisory body to accept as a collateral of the capital its real estate property in Romania with market value 54 million euro. The supervisory body of the private insurance companies, however does not want to accept this asset as Commercial Value was refused a license for opening a branch in Romania. According to Vidalis the decision of the supervisory body has no grounds and the manifest of “hostility” towards the corporation is a result of the cooperation of Advantege Capital with Pavlos Psomiyadis, who currently owns only 10% of the company and his wife Anna Psomiyadis, who resigned from the board of directors of the company on December 23rd this year.

On January 18th, 2010 Commercial Value is expected to present to the Supervisory body of the private insurance companies a rehabilitation program, and by February 18th to finish increasing the share capital. In the beginning of the new year it also expected a probable increase of the insurance fees with 15%.  

Tags: insurance companies shut down Companies
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