Nicolina Creditor List Begins Taking Shape

Six companies and institutions have so far entered the list of creditors of Nicolina SA - Iasi: The National Securities Commission (CNVM) with 29,732 RON, The Central Depository with 952 RON, Aversa SA with 13,712 RON, LE Bridge Corporation Ltd with 10,731 RON, The Ministry of Transportation with 591 RON and Concept Investment SRL - Brasov with 7.65 million RON.The last name on the list is quite a surprise, because this company, in turn, owes 9.6 million EUR to Nicolina. According to the receivable claim filed with the court, Concept Investment SRL - Brasov is claiming 3.7 million RON in participation fees for the tender organized by Nicolina in order to sell the "Fabrica de Utilaje de Constructii" in April 2007 plus 3.95 million RON in debts that Nicolina disbursed to the State Asset Recovery Authority (AVAS).

"Maybe the participation guarantee related to the tender organized by Nicolina can be claimed, but only the bankruptcy judge can decide on the matter," said Dumitru Lazar, a representative of the receiver appointed for Nicolina, i.e. LD Expert Group IPURL - Husi. "We will carefully analyze the amounts stated in the claims and those who really have valid claims will be entered on the list of creditors, which will be posted publicly on 23 December," Lazar added.

In order to sell their debts to the State, Nicolina last year auctioned off two of their key assets, namely to machine building units: one for embankment machinery and one for construction machinery. The fist was sold for 6,896,328 EUR (VAT not included) to Real Estate Development SRL, which was later one acquired by Concept Investment SRL, which therefore also took over the obligations to Nicolina. The money due for this asset was paid in the spring of 2008 and re-directed to the Iasi County Public Finance Directorate as payment of overdue debts. The second asset was declared sold in auction, but the full amount was never actually paid.

The second asset was declared sold for 11,099,147 EUR, of which 9,698,855 EUR plus 134,219 RON (VAT included) is still left to be paid. If this money was collected as well, the factory would be able to full solve their debt problem and even have some money left to possibly resume operations.

The latest available information shows that Nicolina owes 14.8 million RON to the State and some 5 million RON to other creditors. In September, the bankruptcy judge accepted the motion filed by Nicolina to have the insolvency procedure started. The deadline for submitting claims was set for 24 November. The verification of the claims was set to end on 23 December. The bankruptcy judge also decided that the creditor"s meeting take place on 16 January 2009. Potential contestations will be resolved by 21 January 2009 and the final creditor list posted by 26 January 2009. Although only 6 creditors have asked to be entered on the list so far, there are 60 other potential creditors who have been notified of this process.