See News reported that ArcelorMittal Hunedoara said on Monday that it will propose to its shareholders to dissolve the company due to excessive losses.

ArcelorMittal Hunedoara said in a statement that “In case the shareholders strike down the dissolution proposal, the company will seek ROL 397.65 million (USD 117 million) share issue to raise net assets and to fund its operations.”

The proposals are on the agenda of an extraordinary shareholders' meeting scheduled for July 23.

ArcelorMittal Hunedoara said it had amassed a loss of ROL 222.56 million as of end 2009. The company's net asset value has dipped below the legally allowed threshold, i.e. below half of its share capital value. The company's net assets totalled ROL 56.53 million at the end of 2009, while its capital stood at ROL 147.5 million.

ArcelorMittal owned 87.89% in its plant in Hunedoara at the end of 2009. Romanian investment fund SIF 1 Banat Crisana had a 10.04% stake in the plant.

(Sourced from balkans.com)