Romanian govt receives no binding bids for Oltchim privatisation

31 March 2014 13:21 Source:ICIS News

BUCHAREST (ICIS)--Romania-based petrochemical and plastics manufacturer Oltchim has received no binding bids in a tender for the sale of ‘Oltchim II’, a special purpose vehicle (SPV) that includes its core business and assets, the company's administrators said on Monday.

“No investor has managed to submit a purchase offer for the Oltchim SPV shares before the deadline. Four potential investors have purchased the presentation book containing details on the procedure and an offer was submitted by a potential investor after the deadline. We will call for a creditors’  meeting and vote for rescheduling the procedure,” Oltchim’s judicial administrators said in a press release.

The purchase offer submission deadline expired on 28 March.

Oltchim was entered into insolvency proceedings and placed under the management of a special administrator in January last year by the economy ministry, after a previous attempt at privatising the indebted firm collapsed.

The overall value of the assets transferred to Oltchim II is around €305m, according to the SPV's legal administrators, Rominsolv and BDO Business Restructuring.

Oltchim’s main products include polyvinyl chloride (PVC), polyols, dioctyl phthalate (DOP) and caustic soda but a lack of feedstock and working capital has pushed production output down to around 20% of capacity, the company said.

By Marian Chiriac