SEF Petroforest - Piatra Neamt To Guarantee 19 Mio EUR Loans For TCE 3 Brazi SRL

The Board of Directors of SEF Petroforest SA - Piatra Neamt has called an Extraordinary General Meeting of Shareholder for 5 November to discuss and approve mortgaging two buildings as guarantee for two loans worth a total of 19 million EUR to be taken by TCE 3 Brazi SRL - Piatra Neamt. The first loan, worth 10 million EUR will finance the pending production activities scheduled for the farming year 2009 - 2010, whereas the second loan, worth 9 million EUR, will finance investments and new irrigation systems.

Both SEF Petroforest SA - Piatra Neamt and TCE 3 Brazi SRL - Piatra Neamt are part of the group of companies controlled by the businessman Culita Tarata, who uses TCE 3 Brazi SRL as the management vehicle for approximately 56,000 hectares of farming land located on the Great Braila Island.

Established in 1994, SEF Petroforest SA - Piatra Neamt is registered as a timber collection, transportation and processing company. The company is registered on the RASDAQ market of the Bucharest Stock Exchange (BSE) as SEPE. The company produces and sells timber, wood floor tiles, small pieces of furniture and other similar products. It is organized into two business units: a timber collection and primary processing unit in Poiana Teiului (which also manages the company"s motor pool) and a timber processing unit in Piatra Neamt, which manages the company"s three factories.

According to the latest available information, SEF Petroforest SA is property of Leonte Romelcom SRL and Moldinstal SRL with 32.9 per cent each and several smaller shareholders with an aggregate 32.2 per cent. The State Asset Recovery Authority (AVAS) controls 1.9 per cent in the company.