Oltchim reorganizational plan approved by creditors


Oltchim creditors approved the reorganization plan of the Valcea plant, according to lawyer Gheorghe Piperea, one of the company’s receivers. The judicial administrators envisage as way for the company’s reorganization the operational restructuring, corporate restructuring and partial or total conversion of debt into shares for budgetary creditors and selling the business. According to the reorganization document, the turning into account of Oltchim’s patrimony and business will be achieved by transferring the Oltchim business and assets to a Romanian legal person (Oltchim SPV SRL) as sole-associate for Oltchim SA, with legal personality distinct from Oltchim SA and having integral contribution constituted by the latter as contribution in kind and cash and transfer of shares to be held by the debtor in the Oltchim SPV to the investor.

The minimum starting price for negotiation in the process of selecting the winning bid for acquiring shares of Oltchim is EUR 307 million, reads the document. “Any firm and engaged offer must necessarily include the following elements, to be validated by the Consortium of judicial administrators: the auction’s validity period, which should cover the entire period from submitting the offer until full payment of the price; the offered price for assets and Oltchim SA business, which would be firm and unconditional, expressed in EUR; the deadline for paying the price, and it would be paid in full by maximum of 30 days before the completion of the implementation period for the reorganization plan,” reads the quoted document. Also, in order to be validated, any firm and engaging offer should be accompanied by a participation guarantee amounting to EUR 5 million.

Oltchim’s three main creditors are the Authority for State Assets Management (AAAS), Electrica and BCR. Oltchim is under insolvency procedures for two years and its privatization was attempted repeatedly without success, the last deadline being December 15, 2014, but no investor was interested in the company located in Valcea County, which has debts of around EUR 800 million. The court decided to postpone discussions upon the confirmation of Oltchim’s reorganization plan, the next hearing being April 22, 2015, according to a statement sent to the Bucharest Stock Exchange.

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Aprilie 2015

June 2017