$100m of Oltchim debts swapped for equity

Petrochemical plant Oltchim Ramnicu Valcea started operations and debt restructuring procedures in view of privatisation. The company has called an Extraordinary General Meeting of the Shareholders (EGM) for next month, when a capital increase in several stages and outsourcing of related activities are to be discussed. The first stage of the increase will consist in a debt for equity swap, that is Oltchim’s debts to SIF Oltenia, which account for the dividends the SIF was supposed to receive for its 6.61% interest. The second stage, which is also the most important one, will be a debt for equity swap again, with the Banking Assets Resolution Authority (AVAB) to get the shares this time. Oltchim had debts of 3,000bn ROL (nearly $100 million) to the Finance Ministry (MF) this year. MF transferred the account receivables to AVAB, which will become an Oltchim shareholder in the hope of recovering the money or at least part of it, as soon as the plant is sold. ZF