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May 25, 2022

Oltchim obtained financing from Piraeus and Banca Transilvania

The administrators of Valcea-based chemical plant Oltchim, which is in an insolvency procedure since January 30, succeeded in obtaining financing meant to lay the bases of a production increase to a profitable level. Lawyer Gheorghe Piperea, one of the judicial administrators, told the ‘Bursa’ newspaper that Piraeus Bank accepted financing Oltchim with EUR 6 M and Banca Transilvania with EUR 2 M. “Probably an additional EUR 7 M will come from CEC Bank.” In order to be profitable, the plant must operate at about 65 pc of its maximum capacity. The necessary financing was estimated at approximately EUR 20-25 M. According to data made public by judicial administrators Rominsolv and BDO, Oltchim achieved in June this year an estimated turnover of EUR 11 M, higher than in February, when it obtained a turnover of EUR 5.4 M. For this month, administrators forecast an increase of the turnover by EUR 1 M against the previous month. The estimated usage rate of production capacities in June was 21.9 pc, much higher5 than 6.02 in February. For this month, the estimated usage rate of production capacities is 23.52 pc. The figures were announced before obtaining the financing from banks.
Also this month will end the evaluation of Oltchim assets, which is important for the founding of Oltchim 2, a ‘special purpose vehicle’ (SPV) that will comprise the viable assets of the plant, the employees, ongoing contracts, intellectual property rights and invention patents. The present Oltchim will 100 pc own this Oltchim 2, which will be free of debts.
According to the official statements of authorities, several investors are interested to take over Oltchim, including PCC (a significant minority shareholder in Oltchim, with a direct and indirect participation of almost 33 pc), the SCR group controlled by Stefan Vuza, Socar and KazMunaiGaz. Sources close to the situation said other investors interested by the plant are the Israeli investment fund Fortissimo Capital, the Chinese that own Borsodchem Hungary and Africa Israel Group (the owner of AFI malls in Romania).

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