Oltchim’s bankruptcy, an economic genocide for Valcea County. Chemical plant is targeted to be sold this year

It is not appropriate to talk about Oltchim’s bankruptcy even if there are more interests for it, according to the insolvency administrator of the chemical plant.

A possible bankruptcy of Oltchim would be an economic genocide for Valcea County given that approximately 5,300 people bring money to local budgets and they contribute to health insurance and pensions system, Gheorghe Piperea, lawyer and managing partner of RomInsolv, the administrator of Oltchim said in a press conference on Monday, quoted by Agerpres.

The reorganization plan of the chemical plant in Valcea will be discussed by creditors in March 9, the amount recommended by the evaluators for sale is EUR 307 million, said lawyer Piperea. He expects the transaction will take place by the end of the year.

“The method by which we try to achieve a successful reorganization of this plan is to create that SPV (Special Purpose Vehicle) – Oltchim 2 in which to pass all assets, licenses, authorizations, plus the staff, so that the shares can be purchased by an investor,” Piperea said.

He said that the current situation of the company has improved significantly, and Oltchim is no longer “a sick patient in coma”, but a “recovering” one.

Economy, Trade and Tourism Minister Mihai Tudose said recently the chemical plant in Ramnicu Valcea, had recorded EUR 700,000 profit in January, which makes it more attractive for the long-awaited privatisation.

Oltchim is insolvent for two years now, and privatisation failed several times. The latest deadline for this process was December 15, 2014, when no investors showed interest in taking over its historical debts amounting to EUR 800 million.