Oltchim is salable product, EcMin Vosganian says
Chemical plant Oltchim is a salable product and all the investors having asked for access to the company’s data chamber were left with a very good impression, Romanian Economy Minister Varujan Vosganian told a news conference.
He announced that the judicial administrators will, in the last 10 days of September, finalize the construction of the special purpose vehicle SPV, meaning ‘an Oltchim freed from the burden of debts’ and such financial and functioning construction will be showed the Creditors Meeting together with the report assessing the assets of the plant based in Ramnicu Valcea (southern Romania).
The Creditors Meeting will establish what price they want to ask from the potential investors and the negotiations will then start.
Vosganian stressed Oltchim must urgently make a range of improvements, for which some 10-15 million euros is needed.
‘We are very close to achieving a way of funding Oltchim, which would be an utterly out of the ordinary performance,’ said the minister, who recalled that the company, on filing for insolvency, was working at 5 percent of its capacity and was running 5 million euros a day in losses.
According to an economy ministry release on Thursday, the five Financial Investment Companies (SIFs) plan to join into a consortium that should step into refloating the Oltchim chemical plant, envisaging investments in a project that should integrate the Ramnicu Valcea-based Oltchim and the Chimcomplex Borzesti facility.
This intention was announced on Thursday during the talks Economy Minister Varujan Vosganian had with Deloitte Romania chairman George Mucibabici, SCR Group president Stefan Vuza and SIF Moldova president Costel Ceocea regarding the recovery of the facility and ways to attract investments to Oltchim