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February 19, 2019

PCC SE challenges Oltchim’s borrowing EUR 100 M

PCC SE on Wednesday challenged in court the decision of the General Assembly of Shareholders of Oltchim green-lighting the borrowing of EUR 100 M by the company, a press release informs. PCC SE is of the opinion that taking an extra loan to restart Arpechim, ‘an obsolete, ineffective and loss-generating plant’ is ‘a fundamentally wrong business decision and dangerous for the future of Arpechim’. In addition, the loan will be secured against assets bout for one euro and then virtually valuated to be worth EUR 89.5 M, while the actual market value is still one euro, re-valuation that has also been contested in court, the press release further indicates. PCC also notes that it is not against investments being made in Oltchim, but says that, first of all, it should be determined why the company loses money and why the 1995-2007 investment programme worth EUR 335 M has failed to add value to it. In the opinion of PCC, any new investment should be made after correcting the shortcomings that currently generate losses for the company and when Oltchim has been genuinely restructured.

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