PCC - a minority shareholder with 32% in Romanian chemical plant Oltchim, has teamed up with two local investors and submitted a joint prospective bid under the plant's pre-privatisation procedure, Oltchim's court-appointed manager Gheorghe Piperea announced as quoted by Ziarul Financiar daily. Other two prospective bids were received from investment funds, which are not familiar with the company, Piperea added.
The two local investors are Stefan Vuza and Ioan Niculae – both with extensive businesses in the local chemical industry. The management’s statements confirm the government’s optimism in regard to the privatisation of the company. The final solution would be most likely implemented in June – just in time to be considered by the IMF before completing the stand-by agreement later in July.
Another attempt failed last September, and the company had to file for insolvency meanwhile.
Oltchim's special management goes forward with the legal procedures under which the privatisation would take place in June. The restructuring plan at Oltchim cannot start sooner than 45 days after the list of creditors is made public, Piperea announced. The list was published on April 10. Economy minister Varujan Vosganian said that the company would be most likely privatised in June. Piperea has repeatedly voiced plans for transferring the viable assets of Oltchim to a new entity to be sold to an investor. Vosganian was however more in favour of the sale of the company as it is.
Calling for quick action, the company’s minority shareholder finds local allies and proposes own plans. PCC representative Wojciech Zaremba presented at a press conference their own plans for restructuring Oltchim. The plant would be broken into 9-12 separate units [special purpose vehicles] under the umbrella of Oltchim holding, under the plan. Failure to resume activity of the chemical plant would have massive impact on the Valcea county where the plant is located as the unemployment rate is seen as rising to 30-40%. Oltchim generates 15% of the county’s GDP, Zaremba commented.
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