Press release
March 23rd, 2009
Oltchim outlines restructuring plan amid shareholder's worries
23 March 2009 12:51 [Source: ICIS news]
PRAGUE (ICIS news) - Oltchim's debts should reach a maximum €634m ($856.8m) by 2012 with the successful implementation of a restructuring and revamping programme, the Romanian chemical company said on Monday.
In a statement, Oltchim's management dismissed the concerns of a minority shareholder, Germany's Petro Carbo Chem (PCC), that Oltchim’s investment strategy could see the company’s debt rise to €1bn and lead to bankruptcy.
“In 2008, Oltchim reduced its indebtedness from €491m to €434m and, through [state privatisation agency] AVAS’ debt into equity swap, the total debt will be further reduced to €300m. This swap will be implemented subject to prior European Commission approval,” said the statement.
PCC wants to negotiate a takeover and rescue plan with the Romanian government for the state-held company.
Oltchim management reiterated that it was concerned that “50% of Oltchim’s outcome is represented by the production of polyols and caustic soda, products with which we are competing with] PCC Rokita (PCC’s Polish subsidiary) on markets in Germany, Poland, Ukraine, Serbia, Lithuania, and so on”.
But PCC development manager Wojciech Zaremba said there was no question of a business conflict of interest distorting PCC's objective of doing what is best for Oltchim.
“We have invested dozens of millions of euros in this company. We have gone public with our concerns because we want to save that money and also ensure good plans can be implemented for Oltchim that, under the right management, could have a lot of potential,” he said.
By: Will Conroy
|