The turnover of "Romvag" Caracal, which entered insolvency in November 2010, has fallen over five times, from 276.1 million lei to 49.8 million lei, whereas losses only increased 15 percent, from 30.7 million lei to 35.5 million lei. The company has requested to enter insolvency following its financial deadlock and its inability to pay its debts to its suppliers of raw materials, as well as to banks and to the state budget.

The revenues of the company fell almost five times during the reviewed period, from 263.8 million lei to 56.1 million lei, whereas expenses only shrank three times, from 294.6 million lei to 91.6 million lei.

Last year the company laid off 500 employees between February 8th and February 26th, and another 581 employees between June 8th and June 18th. An additional 578 employees were laid off in May 2010.

The majority shareholder of "Romvag" is businessman Cristian Burci, who owns 70.51% of the company through International Railway Systems (IRS), whereas SIF Oltenia (SIF5) holds 27.93% of the shares.

IRS also controls Meva Drobeta Turnu Severin, which manufactures freight cars, and which has also entered insolvency, as well as about a third of the shares of ship builder Severnav. Burci also owns Astra Vagoane Arad which has entered insolvency as well.

Ovidiu VRÂNCEANU(Translated by Cosmin Ghidoveanu) The turnover of "Romvag" Caracal, which entered insolvency in November 2010, has fallen over five times, from 276.1 million lei to 49.8 million lei, whereas losses only increased 15 percent, from 30.7 million lei to 35.5 million lei. The company has requested to enter insolvency following its financial deadlock and its inability to pay its debts to its suppliers of raw materials, as well as to banks and to the state budget.

The revenues of the company fell almost five times during the reviewed period, from 263.8 mill