AVAS Appoints New Nicolina SA Administrator

Doru Mocanu,IaŞi

Luis Vladoiu, an expert with the State Assets Recovery Authority (AVAS) was appointed as the Administrator of Nicolina S.A. - Iasi during the Extraordinary General Meeting of Shareholders. "The list of candidates also included Radu Albu Constantin, nominated by SIF Moldova, Constantin Safta, nominated by the Nicolina S.A. Employees Association, and Neculai Busila, who nominated himself in his capacity as shareholder," said Catalin Oana, the CEO of Nicolina S.A.

The new Administrator replaces Vasile Paulet, who resigned from this position in end-February. Luis Vladoiu will receive a monthly indemnity in the amount of 1,200 RON before taxes. The Meeting also discussed the reorganization plan of the company. "The shareholders approved the reorganization plan. The next step is to obtain the creditors" approval. I hope that the creditors will accept it, too, just as the shareholders accepted it," Catalin Oana added.

Generally, the reorganization plan is aimed at settling all of the company"s debts, which currently stand at some 25 million RON. The money would be obtained by selling approximately half of the company"s assets. Among others, the list of assets include the current site of 18.2 hectares and the buildings on it. After all debts have been discharged, Nicolina S.A. would resume production with the remaining assets and up to 250 employees.

Nicolina S.A. stopped operations in April 2005, when the privatization contract was terminated and the stock held since 2002 by a consortium formed by the Employees Association and Mecanoexportimport returned to the State. Later on, the company began a restructuring programme. In September 2008, the bankruptcy judge accepted the petition filed by Nicolina S.A. for the initiation of insolvency procedures. A total of 38 creditors filed claims in the amount of 24.4 million RON, of which National Fiscal Administration Authority (ANAF) claimed 15.6 million RON.

The Lower Chamber of Parliament appointed a panel to investigate how Nicolina had come to this situation. The panel was also intended to investigate how the State Assets Recovery Authority (AVAS) had managed Nicolina, especially after it had become State property again. "We will analyze how AVAS protected the State"s assets, how the administrators were selected, how the equipment was sold and how the decisions of the Shareholder Meetings were enforced. Nicolina needs such investigation, even though it its rather late. It is not normal to have a viable factory turn into a backyard machinery sale," Panel Chairman Nicusor Paduraru stated.

Nicolina designs, manufactures and sells various road building and maintenance equipment and cement processing equipment. The company is controlled by the State Assets Recovery Authority with 56.87%, followed by the Nicolina Employees Association (24.69%), SIF II Moldova (15.88%) and others.