Romania’s privatization Oltchim fails

Romania’s privatization of Oltchim fails

11:25 AM, 3rd October 2012
Romania’s privatization of Oltchim fails
Victor Ponta Romania’s Prime Minister. © AFP/Getty Images.

VALCEA, ROMANIA: Victor Ponta, Prime Minister of Romania announced the sale of the petro-chemical plant, Oltchim has been cancelled and the privatization has failed, as the tender winner Dan Diaconescu didn’t pay the €45 million necessary to seal the deal. Diaconescu tried to renegotiate the privatization contract in the last 10 days and ended up accusing the government of refusing to take his cash.

Just a few hours before the privatization was due to end, Diaconescu went to the bank and took out money to pay the 3,300 workers at Oltchim. The businessman, who is also a politician and media owner, transported the money to the Ministry of Economy and tried to get in the building. Diaconescu argued that he wanted to negotiate with authorities the way to donate the money to Oltchim’s workers that haven’t received their wages in over 3 months.

“This wasn’t a serious offer and everything was made to mock those working at Oltchim that hoped, that eventually, they will some safety in the next period,” said Ponta. He added that Diaconescu should have paid the €45 million, not €1.8 million for wages. Furthermore, the businessman didn’t present a business plan.

The government will present on Tuesday Oltchim’s revival plan and will try to sell its majority stake of 54.8 per cent stake next year. Authorities will meet with the main lenders of Oltchim -BCR, Banca Transilvania and CEC, and with the state-owned companies AVAS and Electrica, whose receivable claims amount to €400 million.

The government is set to appoint a new management team in order to restart Oltchim’s production.

© Romania Business Review News

 

0 Comments

Login

Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News


Sinopec shuts down three plants over pollution issues

BEIJING, CHINA: Sinopec, China’s largest oil company, has ordered three subsidiaries in Guangdong province to shut operations and correct proble ...

Read more
Honeywell acquires Thomas Russell majority stake for $525 million

MORRISTOWN, US: Honeywell’s UOP will purchase a 70 per cent stake in Thomas Russell Co, a privately-held, leading provider of technology and equ ...

Read more
3M acquires advanced technical ceramics maker, Ceradyne

ST PAUL/COSTA MESA, US: 3M will acquire Ceradyne Inc for $35 per share. The proposed transaction has an aggregate value of approximately $860 million, ...

Read more
Mitsubishi Gas Chemical to stop coenzyme Q10 production

TOKYO, JAPAN: Mitsubishi Gas Chemical Company is withdrawing from the manufacture and sale of coenzyme Q10, a material for medicines and health food. ...

Read more
Linde acquires Canadian firm, Contact Welding Supplies

MISSISSAUGA, CANADA: In a move to strengthen its presence in Southwestern Ontario, Linde Canada Ltd has acquired Contact Welding Supplies Ltd, an inde ...

Read more
KBR to execute LNG pre-FEED studies in Tanzania, East Africa

HOUSTON, US: KBR was awarded a contract by Statoil Tanzania AS to perform pre-front end engineering and design (pre-FEED) studies for a prospective li ...

Read more