Remus Vulpescu: "Banks are willing to lend 25 million Euros to Oltchim"

• The plant of Vâlcea can not save itself through insolvency

The main lenders of Oltchim are willing to provide an additional 25 million Euros in funding to allow it to completely resume operations and become viable, provided the state will contribute with 20 million Euros and subject to a specialized company conducting a review and drafting a restructuring plan, Remus Vulpescu, advisor in the ministry of the Economy, said. "It is important for Oltchim to have no further strikes and social movements. It's true that the workers have overdue wages, but it is very dangerous to halt the plant now. Banks are considering several companies specializing in restructuring, including Alvarez, but I can't tell you which firm will be selected. The employees need to understand that the lenders of Oltchim want to see that there is commitment to the plan to resume activity and that it has results. Solutions to pay the overdue wages will also be found".

The representative of the Ministry of the Economy is among those who supported the insolvency of Oltchim as a way of restructuring the plant. Now, Remus Vulpescu says that Oltchim can't save itself through insolvency: "Oltchim has come to a point where it can't survive without the banks' money. The money will come when the banks will see a well devised restructuring plan, with a removal of the company's leeching, and the banks have this willingness to provide additional funding to the plant to recoup their loans. The authorities and the banks are collaborating very well in the case of Oltchim and I am very optimistic that they will find solutions".

The notification of the state aid for Oltchim is still in the works, and the authorities are hoping that they will receive the approval of the European Commission a few months from now.

The Romanian Society for Trade and Industry will have the ability to help secure financing for the production of Oltchim, said Remus Vulpescu. The new company which will be created by the Ministry of the Economy will have the ability to facilitate the distribution of the products of Oltchim, to get involved in processing mechanisms and thus mediate a healthy and profitable trade relationship between Oltchim and its raw materials suppliers and between Oltchim and its end customers.

According to Mr. Vulpescu, there are no talks on the company taking out a new loan through this new company, but rather providing the working capital by making some intermediations in the trading of industrial products: "For that to happen, it necessary to also ensure the financial side of supplying raw materials and it is necessary to have the certainty that the products of Oltchim can be sold profitably domestically or abroad".

• Professional management, a good measure for the restructuring of the state owned companies

Remus Vulpescu claims that the time has come for the government to take certain steps for the economic turnaround and restructuring of its companies, and professional management is a very good measure for streamlining and restructuring the state owned companies. The implementation of professional management on the other hand needs to be assumed by the authorities.

The Office For The State's Interests and Industrial Privatization - (OPSPI) has had ready since this summer, the documentation for the hiring of independent experts in human resources (companies, not individuals), Mr. Vulpescu said: "We hope that this month we will see the launch of the call for tenders procedure, the licensing and the conclusion of framework agreements with five of the most powerful human resources firms, which will express their willingness to work with the government in implementing promotional management. These major companies will compete with one another for each company which the state will consider for the election of new members on the Supervisory Boards or on the Boards of Directors".

The executive managers, the directorate or the CEO will have to be hired through procedures conducted by each individual company, unless the procedure gets modified or a new selection method gets stipulated in the Emergency Ordinance 109/2011, which is in the process of being amended.