The Securities Market Commission (CMVM) ordered this Monday the suspension of trading in shares of Inapa-Investimentos, Participações e Gestão, SA (Inapa IPG), Portugal’s leader in the distribution of paper and packaging.
In a statement published on the CMVM website, the company said that the president of the board of directors, who is also the president of the executive committee, Frederico João de Moser Lupi, submitted his resignation to the chairman of the audit committee.
Several board members also resigned.
On Sunday, the business group told CMVM it would file for insolvency “in the next few days.”
The insolvency is based, in the CMVM report, on a “short-term cash shortage” of 12 million euros, for which “no financing solution was found within the period prescribed in accordance with German law.”
In view of the “immediate consequences that the filing of an insolvency petition for Inapa Deutschland will have on Inapa IPG, the Board of Directors of Inapa IPG met and reviewed its financial situation, concluding that Inapa IPG will inevitably become insolvent” and took a decision: to declare Inapa IPG insolvent under Portuguese law, which will be formalized in the coming days,” the business group said in a statement.
Inapa IPG claims that the administration made all efforts in a timely manner with creditors and shareholders, in particular with Parpública’s largest shareholder, Participações Públicas, to avoid the insolvency of the German subsidiary.