Romanian steel maker Mechel Targoviste files for insolvency.

By bne IntelliNews February 21, 2013
Romanian steel plant Mechel Targoviste said it has filed for insolvency immediately after Russian steel and mining group Mechel sold its 86.6% stake to a small Romanian limited liability company. The move is aimed at protecting company's interest and at helping resume its operations on sustainable grounds, Mechel Targoviste said in a bourse filing. The company also informs that the new majority owner - Invest Nikarom SRL, controls indirectly 86.6% of its shares through Cyprus-based Mazur Investments Limited. Mechel Targoviste reported EUR 174.4mn revenue in Jan-Sep last year and a EUR 17.6mn loss for the period. The company debt is some EUR 140mn, while its receivables only EUR 34mn. Its labourforce plunged from 10,000 in 1990 to 2,000 currently. The special alloyed steel producer located in Targoviste was sold by the Romanian state to Conares Trading in 2002 and became part of the Mechel group later on. Mechel Targoviste suspended operations in December last year.
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