18 March 2013 15:34 [Source: ICIS news]
BUCHAREST (ICIS)--Oltchim shareholders said on Monday that a new CEO, Mihail Talpasanu, has been selected for the Romania-based chemicals company.
He will be expected to steer the insolvent company towards a potential future privatisation.
A chemical engineer, Talpasanu replaces Mihai Balan, whose mandate ended on 15 March.
Oltchim’s units in Ramnicu Valcea, southern Romania, are currently operating 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 begin insolvency procedures in a move intended to pave the way for the company’s future privatisation, as a result of the group’s current economic problems.
In late January, Romanian companies Rominsolv and BDO were chosen as judicial administrators, to take an audit and propose a plan for restructuring Oltchim.
Romania also announced it was seeking European Commission approval to grant the factory state aid. The government is requesting approval for €45m ($58.4m) in financial assistance for Oltchim in the much-delayed and still ongoing privatisation process of the state owned facility.
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.
($1 = €0.77)
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