13 March 2013 15:34 [Source: ICIS news]
BUCHAREST (ICIS)--The Romanian Economic Ministry on Wednesday proposed Bogdan Nicolae Stanescu as the administrator for majority state-owned chemical producer Oltchim, with the aim of paving the way for the company’s future privatisation.
Stanescu, a former adviser at the state privatisation authority, AVAS, is to act as a liaison between company’s shareholders and its judicial administrators. He will also soon name a new CEO, the Economic Ministry said.
Oltchim’s shareholders have to approve Stanescu’s nomination by the end of this month.
Oltchim’s units in Ramnicu Valcea, southern Romania, are currently working at around 10% capacity, and production at its site has been severely restricted for more than a year as a result of a lack of working capital to secure feedstock supplies.
The Romanian government decided on 23 January to start insolvency procedures, in a move intended to pave the way for the company’s future privatisation, due to the group’s current economic problems.
In late January, two Romanian companies Rominsolv and BDO were chosen as judicial administrators, to take an audit and propose a plan for restructuring Oltchim.
The Romanian state holds a 54.8% stake in Oltchim, with Germany-based chemical producer PCC holding 18.3% and Cyprus-based Nachbar Services holding an additional 14.3%. Smaller shareholders hold the balance.
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