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.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Hungarian branch of Bucharest listed Digi to buy Invitel Tavkozlesi in €140mn deal

Bucharest listed Digi Communications announced on July 21 that its Hungarian subsidiary, Digi Tavkozlesi es Szolgaltato, has signed an agreement to acquire Hungarian broadband and telephone provider ... more

Romanian media tycoon Voiculescu to be released on parole

A Romanian court ruled on July 18 that media tycoon and former politician Dan Voiculescu, who was sentenced to 10 years in prison in August 2014, should be released on parole after serving ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Most Read

  1. Wildfires hit Croatia and Montenegro’s Adriatic coast
    6 days ago
  2. Tajik president’s 23-year old daughter appointed deputy head of largest Tajik bank
    5 days ago
  3. Bosnia’s ruling coalition collapses
    2 days ago
  4. Siemens considers quitting Russia
    10 days ago
  5. FINTECH: A Russian fintech revolution is coming
    10 days ago
  1. CHINA RISING: When sleeping giants meet
    13 days ago
  2. Belarus’ retail king Euroopt goes on the road
    19 days ago
  3. STOLYPIN: Russia’s cyber-challenge cuts both ways
    21 days ago
  4. Siemens considers quitting Russia
    10 days ago
  5. COMMENT: Gazprom’s exit from Turkey is a sign of the times
    11 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss