BUCHAREST (Romania), March 22 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Monday that it is enforcing rights under its financing and security documents with regards to Danube Logistics Holding BV’s shareholding in Danube Logistics, the operator of Moldova's Giurgiulesti International Free Port.
The EBRD’s enforcement action, which commenced on March 18, aims to ensure the uninterrupted operations and ongoing expansion of Giurgiulesti International Free Port and to safeguard its financial interests in the project, the bank said in a press release.
Thus, the EBRD is seeking to prevent any attempt at redirecting funds out of Danube Logistics as a result of the external administration imposed on the company, due to concerns that it will put the company in severe financial difficulties.
The action is in response to the decision by a Moldovan bailiff on February 25 to appoint an external administrator of the assets of Danube Logistics, following a disputed claim against one of Danube Logistics Holding BV’s ultimate beneficiaries.
"The EBRD considers this appointment an interference with the running of the company, having a direct negative impact on its ability to continue to operate and repay its debts, as well as conflicting with EBRD’s legitimate interests as a lender holding security over the shares in Danube Logistics and as an economic beneficiary of those shares," the bank said.
The EBRD has supported Danube Logistics’ development of Giurgiulesti International Free Port since 2005. As of today, the EBRD is Danube Logistics’ largest creditor as well as the main beneficiary of Danube Logistics Holding BV’s shareholding in Danube Logistics.
Giurgiulesti International Free Port is Moldova’s only sea-river port located on the river Danube. On average, the port facilitates the international trade of Moldovan companies with more than 50 countries every year.
Danube Logistics, a Moldovan limited liability company, is the general investor and operator of Giurgiulesti International Free Port. In December 2004, Danube signed an investment agreement with the Government of Moldova for the construction of Giurgiulesti International Free Port.