ROMAERO restructuring plan approved by ANAF under the coordination of CITR specialists

Mihai Cristea 04/11/2020 | 17:16

Under the guidance of the CIT Restructuring team, a company founded by CITR, part of Impetum Group, ROMAERO obtained the approval of ANAF for implementing the restructuring plan by means of GO6. Thus, besides the RON 50 mil. already recovered, the Romanian state will also cash an amount of RON 77 mil. throughout the implementation of the restructuring plan from the total of the historical debt accumulated during the last 10 years of the company’s activity. This is the largest sum ever recovered by the state within such a procedure. Therefore, ROMAERO becomes an example of best practices in saving a strategically important company from the defense sector by using market means.

By applying the restructuring through GO6, ROMAERO benefited from a cancellation of 50% of the main debt, i.e. 100% of the accessory debt accumulated over time, which represents a reduction of the debt by RON 255 mil. Hence, the company becomes bankable, benefiting from all prerequisites to become healthy again. Also, for the first time in the last 12 years, ROMAERO is free from any overdue debt towards the state budget, which means that it will be able to participate in all tenders organized by the Romanian public institutions, amongst which the National Ministry of Defense. Now ROMAERO has a clear way to operate optimally and to have continuous cash flows in order to be competitive on the market.

“The success of our team in applying GO6 for the recovery of ROMAERO has brought a series of premieres on the market and confirms the viability of this preventive solution, considering the fact that ROMAERO is a strategic company, a status which entails certain limitations regarding accessing loans, selling assets as well as various legal constraints characteristic of the defense industry. These challenged us to use our 20 years of experience on the market in order to bring added value by creating a customized product, adapted to a public company, which has proven effective and operational. The success of the solution applied in case of ROMAERO now depends on the implementation of the restructuring plan and on the commitment of the stakeholders involved in the recovery process” stated Andra Butiu, Senior Partner CIT Restructuring, a CITR company, part of Impetum Group.

Applying the restructuring plan creates the opportunity of starting an investment plan of over RON 200 mil. for the next 5 years, already prepared by ROMAERO with the help of CIT Restructuring.

The success obtained in such a short period of time in the ROMAERO project offers the company the opportunity to participate in some of the most important projects in defense and security area, together with global strategic partners.

A new chance for the companies with overdue debts towards the state budget – the deadline for submitting to ANAF the notification of intent to restructure the debt towards the state budget within GO6 is extended until March 31, 2021.

Romanian companies which register debts towards the state budget receive a new chance at restructuring. It is a more than welcomed opportunity, especially considering the fact that half of the important Romanian companies are in distress and this crisis has increased the need for restructuring. Now is the best time for the companies which have debts to the state budget to act and benefit from a new start in business and to recover. The notification procedure for the intent to benefit from GO6 is carried out between November 1, 2020 and March 31, 2021; thus, companies which have overdue debts to the state budget have time to access such a facility” stated Andrei Lotrean, Senior Partner CIT Restructuring, a CITR company, part of Impetum Group.

ROMAERO S.A. (ROMAERO) is the largest state company in the Romanian aerospace and defense industry, which has been on the market for over one hundred years and which carries out its activity in two business areas: Maintenance and repair services for civil and military aircraft and industrial production of aero-structures and related components.

The company’s experience in civil and military aeronautics, its qualified human resources, its infrastructure and production facilities available in Bucharest make ROMAERO one of the most attractive Romanian companies for international military equipment and aircraft manufacturers. ROMAERO is already a partner for Romania and Central Europe of some of the most important international companies manufacturing military equipment, for transfer of advanced military technology both as regards industrial production, as well as for research and development.

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