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Romanian state and three banks create Committee for Oltchim financial stabilization
The top three banks in terms of loans granted to Oltchim, the Ministry of Public Finance, the Ministry of Economy, the Authority for State Assets Recovery (AVAS) and Electrica created the Committee for Oltchim financial stabilization, according to a release sent by the Ministry of Public Finance.
The targets of the committee are to pay the due wages, to restart Oltchim activity, to find out an investor with a proper financial capacity to make sure Oltchim and Arpechim operate at a level close to the potential production.
'According to the announcement made by the Romanian Government on Monday, October 1, the Ministry of Public Finance and the Ministry of Economy have held talks over the past few days with the main creditors of Oltchim. The conclusion was that Oltchim goes through an extremely difficult financial situation, namely cumulated losses of 400 million euros and substantial debts amounting to 580 million euros. All these negative results have cumulated over the past five years of ineffective management of the company, a fact determined mainly by the improper management of the company regarding the interests of the state and the employees. Faced with this severe situation, we decided to create a public-private partnership between the main creditors and the state authorities, creating the Committee for Oltchim financial stabilization. This is made up of the top three banks in terms of loans granted to Oltchim, then Electrica, AVAS, as well as Government representatives, namely the Ministry of Public Finance and the Ministry of Economy,' reads the release sent by MPF and signed the Committee for Oltchim financial stabilization.
The means to achieve the strategic targets for Oltchim are to restructure and reorganize the company so as it should operate with a profit, to retain the jobs and make it more attractive for potential investors. The mechanisms to restart the company will rely on the three banks providing the working capital, in compliance with the restructuring programme, including the results of the negotiations with the creditors.
MECMA will sent the notification to the European Commission on Friday to get some salvage funds for Oltchim, a financial support which is provided, according to the European norms, to a company in need, so as it should keep up its activity as a plan of viable and sustainable restructuring of the company is made up.
Once these forms of financial support are authorized, the Government can also provide a loan out of public funds so as to relaunch the company activity.