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February 4, 2023

Oltchim Ramnicu Valcea: restructuring and financial reinvigoration

The Oltchim Ramnicu Valcea plant has registered losses of RON 3.766 M in the first quarter of this year, 15 times smaller year-on-year, according to the financial data remitted to the Bucharest Stock Exchange on Thursday.

Operational revenues totalled RON 178.267 M, while financial revenues stood at RON 1.021 M. Operational expenditures totalled RON 180.054 M, while financial expenditures stood at RON 1.979 M.

On March 31, the debt owed to Oltchim stood at RON 67.421 M, while the debt owed by Oltchim stood at RON 3.735 M, down by 0.3 per cent year-on-year.

In March, the General Assembly of Oltchim’s Lenders approved the restructuring plan proposed by the consortium of trustees in bankruptcy made up of BDO Business Restructuring SPRL.

The trustees in bankruptcy foresee operational restructuring, corporative restructuring and the partial or total conversion of the fiscal lenders’ 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 binding offer will have to be accompanied by a participation guarantee of EUR 5 M.

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

The restructuring plan was approved by the Valcea Court on April 22.

Oltchim has been insolvent for the past two years and repeated yet unsuccessful attempts to privatize it have been made. The latest privatization deadline was December 15 yet no investor has shown any interest in the plant that has historic debts of approximately EUR 800 M.

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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