Chinese investors to lend EUR 20mn to Romania's ailing chemical plant Oltchim

By bne IntelliNews December 16, 2013

China’s Baota Petrochemical Group and Junlun Petroleum are considering to extend a EUR 20mn loan to ailing Romanian company Oltchim, Bursa daily reported. The loan would come prior to the planned privatisation of the Romanian company.

The technical details of the deal are not clear yet, but it might give an advantage to the Chinese investors in the planned sale of the Romanian company early next year. Romanian managers are discussing this week the loan, the daily reads.

The two Chinese companies have signed in late November a letter of intent with the court-appointed managers of insolvent chemical plant Oltchim, the daily said.

Oltchim’s creditors endorsed on December 2 the management’s plans for i. the setting up the special purpose vehicle Oltchim SPV and ii. evaluating the assets that are going to be transferred to Oltchim SPV. The core assets of Oltchim will be transferred to the SPV that will be later sold to investors. Meanwhile, the managers announced that binding offers for Oltchim SPV are expected by Jan 31, 2014.

Sources told the Bursa daily that the liquidation value of Oltchim’s assets would be EUR 170mn, while the assets’ going-concern value is estimated at EUR 290mn.

Related Articles

Romania’s Banca Transilvania becomes shareholder in Moldova’s Victoriabank

Romania’s Banca Transilvania (BT) has become a shareholder of Victoriabank, the third largest bank in the Republic of Moldova, with a total participation of over 66% alongside the European Bank for ... more

Romania signs €900mn contract for Piranha armoured vehicles

Romania’s government on January 12 signed a €900mn contract to buy 227 Piranha 8x8 armoured fighting vehicles (AFVs) from US producer General Dynamic, partly assembled at Uzina Mecanica Bucuresti ... more

Damen to lose out as Romanian PM says Mangalia shipyard will be nationalised

The Romanian government is committed to taking over a 51% stake in Mangalia shipyards from Daewoo and revive the yard by producing military ships, Prime Minister Mihai Tudose said on January 10 in an ... more

Dismiss