AVAB would sell Azochim Savinesti assets for $12.6m

The Banking Assets Resolution Agency (AVAB) will organise a tender on September 14 for the sale of almost all goods belonging to Azochim Savinesti for 12.6 million dollars, as the agency has already tried all negotiation means with Interagro holding, the company’s owner, sources within AVAB told Ziarul Financiar.

AVAB has to recoup 30.7 million dollars (credits, interests and penalties) Azochim Savinesti had to pay to Bancorex.

Azochim general manager Sandu Carlan stated he knew nothing of AVAB’s intention of putting the company’s goods up for sale and avoided making any comments. “There is no way Azochim management should not be aware of the fact that its accounts are blocked and that it was notified about a tender,” say sources within the Asset Resolution Agency.

The tender includes buildings and production halls (27), as well as associated land of 747,260.89 square meters, owned by Azochim company (representing the entire area the company lies on) and the starting price stands at 4,668,171 dollars.

AVAB is also trying to sell 36 aggregates, devices and equipment situated in the ammonium nitrate production hall and in the ammoniac section, the starting price being settled at 7,992,155 dollars.

“The value of 12 million dollars was given by the General Association of Technical Experts, which acted as a consultant in this deal,” AVAB sources say.

At the beginning of June 1999, when Azochim’s debts to Bancorex were taken over by AVAB, the company was registered with a debt amounting to 30.7 million dollars. Azochim contracted the largest part of these credits in 1993, in two tranches, and the money was used for investments in ammonium nitrate and ammoniac installations.

Azochim borrowed 16.5 million Deutsche marks in the first tranche and then eight million Deutsche marks through the German banks group BHF. Since the beginning of 1998, it has stopped paying back these loans, as investments were made with difficulty. At that time, the company invoked the difficulty with which the State Ownership Fund (which held the company at that time) observed its obligations of securing 15 percent of the value of those investments. The respective investments have not been entirely finalised yet. Only the ammonium nitrate installation was inaugurated at the beginning of 1999, a year after the State Ownership Fund managed to sell the main stake in Azochim to Interagro Holding, which financed the last part of the investment.