Oltchim receives EUR 127 mln payment from Chimcomplex, transfers its assets to new owner. Oltchim's special administrator: It's an unprecedented success

Oltchim receives EUR 127 mln payment from Chimcomplex, transfers its assets to new owner. Oltchim’s special administrator: It’s an unprecedented success

Newsroom 10/12/2018 | 13:08

Oltchim announced its shareholders that it had received the full EUR 127 million transaction with Chimcomplex S.A. Borzesti, a company controlled by businessman Stefan Vuza, and it completed the transfer of ownership.

”It’s an unprecedented success. We demonstrated that a correct reorganization, as the one that has been done for Hidroelectrica, can make a company close to bankruptcy make profit again.Chimcomplex have taken over 60 percent of OltChim. The other state owned 40 percent will be for sale until spring 2019. Out of 1,800 employees, 1,200 will be taken over by Chimcomplex, around 400 people will be fired and will receive compensatory payments and aroud 200 will remain on the state’s payroll. The amount payed by Chimcomplex for OltChim will be distributed to creditors”, Bogdan Stanescu, the special administrator of Oltchim stated for Business Review.

The packages of assets transferred to Chimcomplex S.A. are Chlorosodium, Oxo-alcohols, Polyols, Field Services, Wagons and VCM / PVC 1. Assets include land, buildings, investments under construction, intellectual property rights and other movable goods – mainly machinery and any other similar goods necessary for the production process.

According to Oltchim, 1,164 employees agreed to sign individual labor contracts with Chimcomplex S.A. Following this transaction, Oltchim S.A. will hold on to conservation assets for which the procedures set out in the Reorganization Plan will continue.

Chimcomplex SA is part of the Romanian Industrial Trade Group, controlled by Stefan Vuza, and works in the field of chemical production. Oltchim SA, an important producer in the Romanian chemical industry, entered insolvency proceedings in January 2013 and has been managed by a consortium of judicial administrators.