Solutions considered for the debt’s reduction include asset sales and debt-to-stock conversions.
Company shareholders will convene on April 28 to ratify a Managing Board decision that refers to the employment of an adviser in negotiations.
The contract to be concluded with the consultancy firm refers to the payment of EUR5,000 upon contract signing, added with a commission worth EUR300,000, granted for the reduction of the debt owed to BCR to EUR16 million.
On option considered for the reduction of the debt is to give the bank 20% ownership of the bank.
Contacted by MEDIAFAX, the Cemacon’s general manager, Liviu Stoleru, said the company’s debt to BCR reaches some EUR26 million, from a loan taken for the construction of a plant.
Stoleru added the company plans to diminish the loan and extend the payment deadlines, since the loan was taken under “unrealistic conditions” and the terms are impossible to observe as the market declines.
“Talks with the bank will help us find solutions,” the company representative said.
At the end of 2011, Cemacon posted debt worth a total RON128.2 million (EUR30.3 million).
Shareholders will also decide whether they allow the board to sell assets in order to repay bank loans. Assets considered for sale include a platform, several apartments and a plot.
In 2011, the company posted a loss of 6.5 million lei (EUR1.5 million), compared to RON0.7 million in the year earlier, even though revenue rose by 3.7% on the year, to RON44.1 million.
Turnover stood at RON27.4 million in 2011, up 24% on the year, according to preliminary financial results.
The company has a share capital of RON26.2 million, divided into 262.8 million shares, with a face value of RON0.1.
The largest shareholder is brokerage firm SSIF Broker Cluj (BRK.RO), with a 12.8% stake.
Company shares were trading late-Thursday at RON0.04 per unit, down 2.44% on the day.
BCR is a member of Erste Group Bank (EBS.RO) and it is the largest lender in Romania in terms of assets.