“Within ten days since receipt of the legal notice, Dornafarm must confirm or challenge the existence of insolvency status, under the provisions of Art 33, Law No 85/2006 on insolvency proceedings”, reads the press release.

Shareholders of Dornafarm have recently approved a 100% capital hike via a rights issue of 6.4 million lei. The number of shares will thus increase to 24.57 million from 12.28 million, and capital to 12.28 million lei.

Valentin Tarus, majority shareholder of Remedia said the merger with Dornafarm, approved by the shareholders of the two parties earlier this year, would be put off for 2010.

Dornafarm’s share capital currently stands at 6.14 million lei, divided into 12.28 million shares at a face value of 0.5 lei. Its shareholders are Ovidiu Constantin Rabanca and Hedera Farm that hold a combined 32.49% and Asimed Bucharest with 25.27%. The company’s market value is 4.42 million lei (€1.03 mln), according to yesterday’s closing quote of 0.36 lei/share.