04 July 2012 14:34 [Source: ICIS news]
LONDON (ICIS)--Oltchim has been placed into special administration by the Romanian government, the chemical company said in an announcement to the Bucharest Stock Exchange released on Wednesday.
The appointment of a special administrator by the state would accelerate the privatisation of the state's 54.9% stake in the company, it added.
The privatisation was in May delayed until the end of September by Romania's new government, a move which upset investors interested in bidding for control of the cash-strapped company. Oltchim has been operating at substantially reduced capacity for the past eight months.
The main task of the special administrator would be to streamline Oltchim's activities prior to the sell-off, Raiffeisen bank said.
During the special administration period, fiscal authorities of the Romanian state would not be permitted to use legal enforcement procedures to recover debt payments from Oltchim, the bank added.
The period would also be used to reschedule liabilities towards utilities providers, Raiffeisen said, which calculated that utilities expenses accounted for roughly 23% of the company's turnover in 2011.
Based on conclusions regarding the financial health of the company and in accordance with IMF and EU agreements, some special measures can also be taken during the period which include restructuring programs with or without personnel layoffs, Oltchim’s announcement to the Bucharest Stock Exchange said.
The special administrator was also allowed to spin-off divisions and convert part of Oltchim's debt into equity, the release added.
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