LAWYER GHEORGHE PIPEREA: "PCC and MFC Commodities are interested in the privatization of Oltchim"

• Wojciech Zaremba - one of the special administrators of the plant

• Rescue package and state guarantees through Eximbank for the resumption of the plant's operation

German company PCC and MFC Commodities SUA (the Austrian branch) have expressed their interest in the future privatization of Oltchim Râmnicu Vâlcea, said Gheorghe Piperea, a partner at Rominsolv, and receiver of the plant, together with BDO Business Restructuring. PCC is a minority shareholder in Oltchim, with over 30% of the share capital, and MFC Commodities is one of the creditors of the company.

According to some sources from the plant, trader MFC Commodities has an older contractual relationship with Oltchim and allegedly has about 40 million Euros in debt to recoup. MFC Commodities offered to lend this kind of money to Oltchim, in order to allow it to resume its production capacities, through a loan which the trader may take out from Erste Bank, our sources also say. Constantin Roibu, the former CEO of Oltchim, declined the offer.

Last week, BURSA exclusively reported that businessman Ştefan Vuza, who, in September, participated in the call for bids for the acquisition of the majority stake in Oltchim, through Aisa Invest and Chimcomplex Borzeşti, is still interested in the takeover of the plant of Vâlcea.

Mr. Vuza told us: "In September, after the installation of the new government, I have sent a letter to PM Victor Ponta expressing interest in the privatization of Oltchim. In January, I had several talks with the Ministry of the Economy. I am still interested in the privatization of CS Oltchim Râmnicu Vâlcea, if the company is rid of its debts, of the contracts with the leech companies, and if it successfully restructured. I don't we will see any concrete in less than a year, in the insolvency process which I hope will end with a reorganization and not with a bankruptcy".

Lawyer Gheorghe Piperea told us that on Friday, he participated in a meeting with Minister of the Economy Varujan Vosganian, with the suppliers and lenders of Oltchim, as well as with PCC: "Following the meeting, it was agreed that Wojciech Zaremba, the representative of PCC in Romania, will be one of the special administrators of Oltchim. The other special administrator will be appointed by the Ministry of the Economy. As you know, PCC has expressed its desire to be involved in the administration of the plant during the insolvency".

"I think that it a good thing for one of the special administrators to be a representative of PCC because that means there will be no surprises from the minority shareholder. PCC will support the reorganization process, including through supplying raw materials, and will support the approach of the Romanian authorities to obtain the approval of the European Commission for the state aid which will be granted to Oltchim".

The receiver of Olchim told us that banks support the reorganization of the plant and that the aid of the state will consist of a rescue package of about 20 million Euros and the granting of letters of bank guarantee issued by Eximbank for loans of 25 million Euros. Thus, the working capital will be secured to allow Oltchim to resume production at full capacity.

The notification of the state aid for Oltchim has not yet been sent, as there are still talks and information exchanges between the Competition Council and the European Commission on the final form of the documentation.

Gheorghe Piperea also told us that he talked to the utilities providers of Oltchim, whom he assured that they would get back the amounts they are owed, because according to the legislation in effect, the holders of such claims get paid before the holders of other types of claims. Oltchim will have all the utilities available during the insolvency period.