September 10 (SeeNews) - Croatia's financial services supervisory agency Hanfa said it decided to launch an infringement procedure against local power transmission equipment manufacturer Dalekovod [ZSE:DLKV] over a failure to disclose inside information.
According to HANFA, Dalekovod has failed to make public information that the company had received expressions of interest for participation in its financial restructuring and had decided to hold negotiations with one of the tenderers in the process, in which the largest creditor of the company could have participated, the financial supervision authority said in a statement on Thursday.
Hanfa also said that it indirectly supervised Dalekovod's practice from February 4 to May 21, 2021 and concluded that the mentioned information about the company's financial restructuring is inside information that investors could have probably used when making decisions for investments in its shares.
Dalekovod can appeal Hanfa's decision before the Administrative court in Zagreb within 30 days, Hanfa said.
On June 30, the shareholders of Dalekovod approved a proposal for its financial restructuring made in May by local electrical equipment manufacturer Koncar Elektroindustrija [ZSE:KOEI] and Maltese company Construction Line Ltd.
The proposal envisaged to cut Dalekovod's share capital to 2.5 million kuna ($395,000/334,000 euro) from 247.2 million kuna to cover earlier losses, only to further increase it to up to 412.5 million kuna in order to raise funding to cover the company's debt to creditors under a pre-bankruptcy settlement agreement concluded in January 2014.
Last month Dalekovod said its minority shareholders initiated two separate lawsuits, both challenging all of the decisions taken at the company's annual shareholders' meeting on June 30.
Dalekovod's shares last traded on Thursday on the Zagreb bourse, ending 1.19% higher at 85 kuna.
(1 euro=7.494 Croatian kuna)