Euroins faced a wave of foreclosures, which began in more than 2,100 cases after March 17, when the authorization to carry out activities was canceled, which led to an accelerated decrease in financial liquidity, due to which the insurer, through the Guaranty Fund of Insureds, the temporary administrator of the company, convened a general meeting for petitioning the court for its insolvency.

According to an announcement published in the National Curierul, Euroins, legally represented by the Insurance Guaranty Fund (FGA) as provisional administrator, in the person of Kelin Rangu, requests the convening of an extraordinary general meeting of shareholders on May 30, 2023.

On the agenda is the approval of the wording of the application for the opening of the bankruptcy procedure of the company “Euroins” and instructing the management of the company to submit this application to the court.

A wave of charges against Euroins in more than 2,100 court cases

One of the reasons why the FGA decided to convene an extraordinary meeting of shareholders is “the accelerated reduction of the company’s liquid assets as a result of foreclosures against the company in a number of 2114 enforcement cases in the period 03/17/2023-04/18″. .2023”.

Other reasons are explained by the fact that the company has payment obligations until April 20, 2023, as well as the fact that on March 29 the Bucharest Court rejected Euroins’ request for a stay of enforcement, and the Court of Appeal rejected the insurer’s request for a temporary stay on April 24, 2023 the effect of the decision regarding the ASF, according to which the operating permit was canceled.

Sources: About 100 Euroins cars were seized by bailiffs

According to HotNews.ro sources, the situation for the former leader of RCA is serious because of the damage cases won in court by the injured parties of Euroins, who, based on the executive orders of the courts, hire bailiffs to come and seize the accounts. and insurance company assets.

• “Three days ago, bailiffs came and seized about 100 Euroins cars. These cars are put up for sale and thus pay off debts owed to the insurer’s creditors who have won these rights in the courts.
• The material value demanded in more than 2,100 collection cases is several times higher than the liquidity of Euroins, and the company’s accounts are blocked.” This was reported to HotNews.ro on Thursday by sources who wished to remain anonymous.

Requested by HotNews.ro to both the Insurance Fund (FGA) and Euroins to clarify the company’s liquidity situation, what assets have already been seized and what sums are being claimed in more than 2,100 court cases, and we will return with answers as soon as we receive them.

What are the implications of the shareholders’ call for Euroins to file for bankruptcy

The fact that “Euroins” can seek bankruptcy through the court is not surprising. The offer is made by the Insurers’ Guarantee Fund, which has been appointed by ASF as the company’s interim administrator, and is a legal obligation.

The same thing happened when FGA took over the interim management of City Insurance.

The insolvency of an insurance company can be brought to court in two ways: by the Financial Supervisory Authority (ASF) and by the relevant company.

The convener of the FZU says that if the necessary quorum is not gathered on May 30, the general meeting of Euroins shareholders will be held on May 31.

• But what will happen if the shareholders of “Euroins” do not appear at this meeting called by the FZU, or appear and reject the proposal of the FZG to apply to the court for recognition of bankruptcy?

The answer in both cases is the same: the FGA offer remains without an object. The FSA cannot independently demand the recognition of the insolvency of Euroins through a court.

ASF officially sought the bankruptcy of “Euroins” through the court: why it is important for the victims and clients of the ex-head of RKA

The Financial Supervisory Authority (ASF) has formally requested the bankruptcy of Euroins, the former RCA leader with almost 2.8 million policies in force, and the first deadline granted by the Bucharest court is April 28.

The process is important because, depending on the court’s decision, there are certain time limits for RCA policies issued by Euroins and claims for damages to the FGA.

ASF filed for bankruptcy against Euroins on April 18, 2023, as part of a process that has been ongoing since last month, in which several car dealerships are also asking the former RCA leader for bankruptcy.

The first term in this case is April 28, 2023, but, most likely, the decision will not be made then, but at a later date of the court, given the complexity of this case.

All current Euroins policies are terminated by law within a maximum of 90 days from the moment of the decision to open the bankruptcy procedure

The court’s decision is important for all Euroins customers and victims, as it will determine how long their insurance is still valid or how much time they have left to claim damages from the Policyholders’ Guarantee Fund (FGA).

Thus, once the Bucharest Court decides to open bankruptcy proceedings in the case of Euroins, the immediate effect is that within 90 days, from that moment, the insurance policies issued by this insurer are terminated by law.

After the final decision on the bankruptcy of “Euroins” in court, one more term will expire

If the decision to open Euroins bankruptcy proceedings remains final, another deadline begins to count down: from this moment, all Euroins customers and injured persons will have a maximum of 90 days, during which they can submit claims for compensation to the Insurers’ Guarantee Fund ( FGA).

Injured parties and clients of Euroins have sent more than 30,500 appeals to the Insurance Guarantee Fund (FGA) for damages or premium refunds, but by April 3, the Fund had officially registered just over 10,100 such appeals.

ASF estimates that the FGA could pay €250 million to victims and Euroins customers.