RAFO Onesti refinery, put up for auction

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RAFO Onesti, the third oil refinery by capacity in Romania, which returned to insolvency in the autumn of last year and has to pay off debts of over RON 330 million, will be put up for sale with an initial starting price of USD 59.5 million, VAT included (USD 70.8 million in total), following the market assessment, digi24.ro informs, quoting profit.ro.

The refinery will not be ceded below the liquidation value of USD 29.75 million plus VAT, meaning 50 percent of the market value.

The purchaser has the obligation to carry out activities that are related to the object of RAFO activity for a period of minimum 5 years, in order to prevent the decommissioning of the entire platform.

By selling the company’s assets at the market value, it is estimated that creditors will recover about 57 percent of their claims.

RAFO Onesti has become insolvent on its own initiative in November 2016, 5 years after when in 2011 it made the exit from reorganization proceedings which lasted no less than seven years, due to previous entries in the insolvency that occurred in 2004.

In 2015, RAFO Onesti had total debts of over RON 312 million.

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