VOSGANIAN:  "Even if it goes into insolvency, Oltchim will still need a state aid"

• Yesterday, the Government decided to have the plant file for insolvency, just like "BURSA" has announced since last week

• PCC wants to get involved in the management of Oltchim

The coming of Oltchim into insolvency for reorganization does not remove the need for a state aid to help the plant resume production at a capacity of a minimum of 65%.

Varujan Vosganian, the Minister of the Economy, said: "Even if Oltchim enters insolvency in order to reorganize, we will still need to perform a capital injection, which is something that every one agrees with. This capital contribution is considered a state aid and needs to be announced to the European Commission. I have discussed with the representatives of the International Monetary Fund and the European Commission and I am informed that we will submit the documentation for approval of this state aid state aid that the plant needs to resume production at a level which will ensure its profitability".

He declined to mention the value of the state aid for Oltchim Râmnicu Vâlcea.

Since last week, BURSA anticipated the insolvency of Oltchim, when minister Vosganian gave us an exclusive interview in which he said that he had asked the government for a reprieve until yesterday, to give him time to consult with the representatives of the plant of Vâlcea and with the creditor banks, the unions and other specialists, when it comes to the solution for the rescue of Oltchim.

He has presented the Executive four options for the future of Oltchim: continuing its activity in the current manner, reorganization, privatization and voluntary liquidation.

The Minister of the Economy, said at the time that he wants a solution which would allow for Oltchim to be saved.

The request for the insolvency of Oltchim will be sent to the Court of Vâlcea, after the decision will be made by the Board of Directors of the company.

Yesterday, the Ministry of the Economy, with the support of the Government, has given a mandate to its representatives on the Board of Directors of Oltchim to approve the filing for insolvency of the company, with a view for restructuring. By the time the newspaper went to print (18:00), the meeting of the Board of Directors had not ended yet.

Shares of Oltchim had not yet been suspended from trading yesterday.

• Diculoiu: "Without the capital injection from the state, Oltchim runs the risk of bankruptcy"

Mihai Diculoiu, the leader of the Free Union of Oltchim, said that the insolvency of Oltchim needs to be supported by the government through a minimum capital contribution of 45 million Euros. He said that he talked about this yesterday, to the head of the OPSPI, Gabriel Dumitraşcu, and to the general manager of Oltchim, Mihai Bălan.

"The 45 million Euros are necessary to restart the operation of the plant at over 65%, to ensure its profitability. Without that money, the insolvency will end in bankruptcy", the union leader told us.

In autumn 2012, the Ministry of the Economy announced that it intends to give the Oltchim Râmnicu Vâlcea plant an emergency aid of 20 million Euros. At the time, the authorities have negotiated with the creditor banks, to themselves lend another 20-25 million Euros to Oltchim to ensure the working capital needed to restart the plant.

The unionists are hoping that the restructuring through insolvency will not involve massive layoffs and have asked the authorities to comply with the collective labor contract. Sources from the plant state that the report recently drafted by Alvarez at the request of the creditor banks indicates that about 2,000 layoffs would be needed.

• Zaremba, PCC SE: We want to be involved in the administration of "Oltchim"

PCC SE, the minority shareholder of Oltchim, wants to be involved in the management of the insolvency company, said Wojciech Zaremba, the representative of PCC SE in Romania.

"PCC SE understands the difficult situation which Oltchim is in and the decision of the Romanian government", said Mr. Zaremba, who continued: "We will do everything in our power and we will use our entire expertise to cooperate for the rescue of the company and to prepare it for normal functioning".

He said that PCC SE will not accept not being involved in the restructuring of the company: "We have asked the Romanian authorities for this and we can't imagine we won't be involved in such an important process, in a company in which we hold more than 30%".

According to the representative of PCC, it would take approximately one year to prepare "Oltchim" for normal operation.

According to Wojciech Zaremba, the reduction of the number of employees is necessary, but it needs to be done carefully.