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May 18, 2021

Transgaz and OMV lend money to help Nabucco avoid insolvency

Transgaz Media (TGN) and OMV will lend a maximum of EUR 7.5 million to Nabucco Gas Pipeline International Company (NIC) in Austria, who has failed to find a gas provider for the Nabucco gas pipeline, and thus help the company avoid going into insolvency, Mediafax reports.
Transgaz will contribute a maximum of 50 percent of the EUR 7.5 million, according to a press release issued by the company to the Bucharest Stock Exchange Market (BVB). The loan will bear interest and will be insured with viable assets of NIC. Transgaz will also contribute an additional EUR 1.34 million to increase NIC’s share capital and cover the liquidity deficit of EUR 7.5 million. The management committee of NIC has approved a budget of EUR 20 million for the “controlled” closing of the company, the press release reports.
Gas carrier Transgaz Medias spent RON 110.7 million (EUR 25.1 million) on the Nabucco Vest gas pipeline project, an abbreviated version of the initial project. Seeing how the project was not carried through, the state company reported this amount as loss. Austrian Group OMV, leader of the Nabucco Corporation, allocated EUR 55 million to cover losses related to Nabucco Vest. The Nabucco Corporation shareholders are OMV (Austria), Transgaz Medias (Romania), BEH (Bulgaria), MOL (Hungary), BOTAS (Turkey) and GDF Suez (France).

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