Concilium Consulting Restructured Tax Debts Amounting to Over RON 48 Million for the Chimica Group Companies

Concilium Consulting, consulting company in business restructuring affiliated to Turnaround Management Association, managed to get, according to the Government Ordinance 6/2019, the restructuring of all outstanding budgetary debts of Chimica Group, amounting to over RON 48 million.

“The National Agency for Tax Administration approved all the six restructuring plans we have drafted for the Chimica Group companies and, if these ones develop their activity according to the respective plans for the next seven years, their tax debts of over RON 25 million will be cancelled. In the meantime, the companies benefit from the payment instalment for the rest of the amount, approximately RON 23 million”, explained Vlad Năstase, CEO Concilium Consulting, appointed as independent expert within the restructuring process of the Chimica Group companies.

“Choosing the expert to support the company within the restructuring process is critical to obtain these benefits both for the Group and for our creditors. It is further proof that the State recovery measures work if they are implemented correctly. We are extremely satisfied with the results, especially since this way, we managed to save together more than 760 jobs”, adds Gelu Stan, Chairman of the Board of Directors within the Chimica Group companies, managed in a two-tier system.

Keeping these jobs will ensure, during the seven years of development of the restructuring plans, returns of over RON 435 million to the State Budget as payroll. The corporate income tax and the VAT corresponding to the commercial relationships developed will be added to these amounts.

The measure disposed in the Ordinance 6/2019 allows the companies to be exempted from the payment of the tax liabilities due on 31.12.2020, under certain conditions and for a period up to seven years, with the possibility of extension with another three-year period. Practically, the companies can benefit from the cancellation of the cumulated accessories and from payment deferral with up to half of the principal of the tax debt – followed by the cancellation of the amounts deferred for payment, if the restructuring plan is successfully completed.

The private and public companies that are not eligible for other restructuring measures of the tax debts disposed to this end in the Fiscal Code and which are not insolvent, can sign up for this measure, with certain exceptions. In order to be eligible, the companies must also be up-to-date on current debts paid until the date the restructuring plan is submitted. A positive Test result of the Prudent Private Creditor is also requested, completed also based on the Restructuring Plan corroborated with the evaluation report issued by an ANEVAR evaluator. All companies applying for this measure must select an independent expert.

Vlad Năstase: “It is important to note that the companies eligible for this measure still have time until 30 September 2021 to send a notification of the restructuring intention and submit the Restructuring Plan and the Prudent Private Creditor Test until 31.01.2022 in order to start the restructuring process of the outstanding tax debts. We are in the process of approving another two plans for large companies from different industries, for which we are confident that the National Agency for Tax Administration will approve as soon as possible the restructuring of the tax debts amounting to over RON 21 million, with all the benefits resulted from this result.”

Chimica Group, industrial player with a tradition of more than 80 years in Romania, has become a holding company for the management of the financial assets of the group companies in 2012. The Group includes the companies Chimica SA, Chimsport SA, Chimica Automotive SA, Chimsport Automotive SA, Chimica Research & Development SA, VES SA, Chimica Medical SRL, Chimica Real Estate SRL and Chimica Navete & BLC SRL. In 2020, the companies within the Chimica Group had a turnover of more than RON 100 million. Recently, Chimica Group has sold a ski boot production business to the giant Amer, that holds the Solomon brand and has replaced this business with the production of subassemblies for household appliances, its customers being important international companies on the market of the business.