Oltchim Minority Shareholder Asks European Commission for Investigation

The German-based PCC SE, the leading minority shareholder in the Romanian-based petrochemical plant Oltchim S.A., has asked the European Commission for an investigation into the controversial case of Oltchim"s debt-for-shares swap, a PCC press release announced. Oltchim has recently filed for State guarantees to take a loan, in addition to the State aid already granted in the form of a swap of the company"s debts to AVAS for shares.

PCC SE told a press conference early last week that they definitely opposed the swap as they regarded it a breach of E.U. regulations. Consequently, PCC SE on 6 March provided the European Commission with further information regarding the potential State aid to Oltchim S.A. including the prospective State guarantees for a loan. "We have informed the European Commission of the Romanian Government"s intention to swap AVAS" receivable for shares, as well as of other forms of State aid for Oltchim," PCC Development Director Wojciech Zeremba announced.

PCC SE repeated the need for an official investigation by the European Commission should Romania not duly notify the prospective swap. "Also, if the Romanian Government does send a notification, we have informed the Commission that they should open an investigation in order to make sure that the restructuring plan will lead to the long-term rehabilitation of Oltchim and that it will not be limited to finances, but also to a deep industrial level. It is our belief that an illegal State aid to Oltchim would expressly affect the interests of PCC. We are ready to participate in the restructuring of Oltchim, as long as the State aid offered to the company is compatible with the common market regulations," said Wojciech Zeremba.