Administrators of Burci's plants seek buyer for majority stake

The judicial administrators of Astra Vagoane Arad, Meva and Romvag, which have become insolvent over a 120 million-euro debt, are seeking an investor to take over the majority stake in the three plants controlled by International Railway Systems (IRS) group of businessman Cristian Burci.

The new investor would have to find a solution so that the main creditor banks would join the new shareholder structure, with the debts to be converted into shares. Other options considered as part of the reorganisation process of the three companies, with 230 million euros in turnover in 2009, entail a capital injection by shareholder contribution or from creditor banks.

“We are conducting negotiations with potential investors, we are seeking together with the main creditors and the current shareholders to find the best solution for an efficient deal structure,” said Rudolf Vizental of Solve Insolv insolvency firm, the judicial administrator of Astra Vagoane Arad.

Burci’s plants, Astra Vagoane Arad, Romvag Caracal and Meva in Drobeta Turnu Severin, became insolvent at the end of last year. From 4,814 employees in 2009, the three plants will be left with 1,700 employees by April, according to the insolvency firms and to ZF calculations.