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February 3, 2023

Oltchim to be restructured for privatization

Oltchim’s General Lenders Assembly has approved the plant’s restructuring plan proposed by the BDO Business Restructuring SPRL consortium of trustees in bankruptcy. The plan will be presented to the syndic judge on March 25, according to the document sent to the Bucharest Stock Exchange (BVB).

The trustees in bankruptcy foresee operational restructuring, corporative restructuring and the partial or total conversion of the fiscal creditors’ claims into shares, as well as the sale of the company’s activity.

According to the restructuring document, Oltchim SA’s assets and business will be sold by having them transferred to a Romanian juridical person (Oltchim SPV SRL) whose sole associate will be Oltchim SA. Oltchim SPV SRL’s juridical personality will be distinct from that of Oltchim SA and will benefit from the latter’s full input in the form of real-estate, cash and the cession to the investor of the shares that the debtor company will own within Olthim SPV.

The minimum starting price of the tender that will be based on the selection of the winning offer is of EUR 307 M, the document points out.

Likewise, in order to be validated, any firm and committal offer will have to be accompanied by a participation guarantee of EUR 5 M.

Gheorghe Piperea, the coordinating partner of RomInsolv SPRL, points out that the restructuring plan mainly took into account Oltchim SA’s positive operational results registered since October 2014. Its EBITDA has risen from a monthly average of over EUR 300,000 in Q4 of 2014 to over EUR 700,000 in January 2015.

Oltchim’s top three creditors are the Authority for State Asset Administration (AAAS), Electrica and BCR.

Oltchim has been insolvent for the past two years. The plant is state-owned, the Economy Ministry owning 54.8 per cent of its shares. Its other shareholders are PCC SE with 18.3182 per cent of the shares, Polyolt Holding Limited (14.0251 per cent), other juridical persons (1.4832 per cent) and physical persons (11.3673 per cent).


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