All Eyes on Oltchim Again
The government decided to request an insolvency order because the plant has become a burden for the state, reporting losses of hundreds of millions of euros in the past few years.
Articol de Radio România Internaţional, 31 Ianuarie 2013, 18:09
One of Eastern Europe’s largest petrochemical works, Oltchim Ramnicu Valcea in southern Romania saw a request for insolvency approved by a Ramnicu-Valcea court on Wednesday.
The ruling is not final, and may be appealed against within 7 days.
The government decided to request an insolvency order because the plant has become a burden for the state, reporting losses of hundreds of millions of euros in the past few years. In 2012 the state tried to privatize the company, but the procedure fell through.
A controversial Romanian businessman won the bid for the majority stake in Oltchim at that time, but he failed to pay the pledged 45 million euros, and the government did not propose a new privatization deadline.
Once the insolvency procedure is launched, the judicial management has 60 days to come up with a plan to address the situation.
Here is Mircea Diaconu, a representative of the judicial management:
Mircea Diaconu: “We need to analyze the causes of the insolvency, to reach a conclusion on whether the debtor Oltchim may be rehabilitated, and to draw up a list of debts and creditors. We have 60 days after the procedure is initiated, during which we have to draw up a report.”
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