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 Transgaz to open branch in Moldova to speed up pipeline construction

Romanian natural gas transport company Transgaz will soon open an office in Chisinau to speed up the construction of Ungheni-Chisinau pipeline that will bring Romanian gas to Moldova’s main ... more

Cummins reportedly to relocate production from UK to Romania after Brexit

Global engine and generators manufacturer Cummins plans to relocate production from the UK to Craiova, in southwest Romania, after Brexit, Craiova mayor ... more

Nato boosts Black Sea presence with new Romanian military force

Nato launched a new multinational force in Craiova, southern Romania, on October 9, as part of its Forward presence in the southeastern alliance states.  The move is aimed at countering ... more