THE APPEAL TO THE BANKRUPTCY OF FORTUS WILL BE TRIED TOMORROW Volintiru: "The new reorganization plan can save < Fortus > Iaşi"

Reporter: Considering that tomorrow will be tried the appeal in the "Fortus" Iaşi case, what are your estimates for the future of the company?

Adrian Volintiru: I am very confident that the appeal will be accepted. As long as the AAAS, SIF Moldova (ed. note: with a stake of 13.56% of the share capital of the plant), the Romanian government, the County Council of Iaşi, the Mayoralty of Iaşi, all want the same thing - for the lawsuit to be won in the appeal, and think that "Fortus" must go on and develop and reorganize, - I say that things will go well. I think that we have great odds of winning, because, in the second part of the year, we have already seen a reorientation of the government towards saving the manufacturing units and the Romanian industry. Under these circumstances, for each of the major companies, even if we are in difficult situations, we have inter-ministry commandments, we have discussions, concrete measures, we have plans, we get involved ...

Reporter: The representatives of the IMF also support the judicial reorganization. They have given a positive assessment of the evolution of "Hidroelectrica" after it entered insolvency ...

Adrian Volintiru: "Hidroelectrica" is not the only example. We can also look at "Uztel", which, being insolvent, which has been profitable for over a year. From my point of view, "Uztel" has been saved.

Reporter: If the court accepts the appeal tomorrow, what will be the next step?

Adrian Volintiru: We will proceed with the new reorganization plan, which is feasible, and, in my opinion, it can be very easily achieved and it can help rescue the company.

Reporter: What does this reorganization plan involve?

Adrian Volintiru: First of all, the volume of orders received must increase. Based on my talks with the management of "Fortus", in the beginning of December (ed. note: 2012), the company's orders only covered approximately 20% of the output capacity. They are now at approximately 42%. On Monday, we have decided to hire a foreign sales expert, because in terms of the quality of its work and of its competence, "Fortus" has an extraordinary ability to play on the Western European market, in the Gulf or in the former Soviet area. One step in the reorganization is the increase of the orders to at least 60-65% of the capacity, in the coming 3-4 months, a requirement which, if met, will allow "Fortus" to borrow from banks, allowing it to develop its activity far more. The edge which the company has, compared to other companies, is that is has a very low exposure to loans.

Reporter: Even so, considering the "Oltchim" case, do you think that banks will easily accept lending to "Fortus"?

Adrian Volintiru: The moment the company comes with clear, firm orders from customers, and with serious business partners, with a sustainable business plan, with an extremely low exposure and with collateral, it is very hard even for the banks to say no.

Reporter: How much does "Fortus" currently owe the banks, and how much does it owe the state?

Adrian Volintiru: It owes 1 million Euros to banks, plus penalties, and it also owes 230 million lei to the state. The AAAS has also taken over the receivable of the National Tax Administration (ANAF), in the second half of 2012. That is why we can think further, because the request for bankruptcy originated from the ANAF, which has a different legislation it uses, and which requires it to collect its receivable.

Reporter: Speaking of orders, are they domestic or foreign?

Adrian Volintiru: Both, more specifically from Western Europe, with an untapped potential in the Gulf area and the former Soviet Union.

Reporter: How much of the sales go to Europe?

Adrian Volintiru: About 25-30%, but what is important is the potential to reach this market, which is why we are strengthening the team at "Fortus", to grow on that particular segment.

Reporter: Does the new reorganization plan involve layoffs as well?

Adrian Volintiru: The reorganization plan involves the increase of the turnover and of the profitability. The way I see "Fortus" at this time, with the potential it has, the company can very easily reach a turnover of 100 million Euros, within a year, a year and a half. Under these circumstances, the staff will probably grow to at least 1000 employees. There won't be any layoffs.

Reporter: Lately, there have been several auctions for the sale of some of the assets of "Fortus". Were any of those assets sold?

Adrian Volintiru: None of those assets was sold. There have been five rounds of auctions, starting from December 2012, but none of them were sold. At any rate, care was taken to sell machinery which the plant no longer needed, which can't affect the current and future viable modules of the company. We are talking about fixed assets which are no longer used, with a book value of zero.

Reporter: Did the assets fail to sell because of the asking price?

Adrian Volintiru: It is hard to tell why they did not sell. On Monday I met with the unionists of "Fortus", who would be the main beneficiaries of the sale of the assets, and they have asked me not to cut the price, which amounts to 2.2 million Euros (ed. note: the value of the assets put up for sale). I will consider their request as well, especially since they are the ones who would be hurt the most, because the main destination of the money obtained from the sale would be the payment of the outstanding wages. On Friday there will be a General Shareholder Meeting in which we will decide whether it is opportune to cut the price or not for the next round of auctions, which will be held in mid-February.

Reporter: What is the amount of the overdue wages?

Adrian Volintiru: Due to the difficult period which the company went through, over 9 million lei in overdue wages have accrued. But now, the 700 employees of the plant are getting over 80% of their salaries every month.

Reporter: Thank you!