The group of banks led by RBS Romania, which negotiated with Thomas Manns the sale of rolling stock manufacturer Astra Vagoane Marfa, Meva and Romvag, became a shareholder alongside the 35-year old German investor in the company set up in order to conclude the transaction – Astra Rail Industries (ARI). The group led by RBS now holds 14%, while Manns is majority shareholder with 86%.
The deal included the transfer of the main assets of the three plants of International Railways Systems (IRS), a company controlled by businessman Cristian Burci, the partial assumption of liabilities (around EUR30 million, according to the quoted sources) and the involvement of creditor banks as minority shareholders. Parts of the debts have been erased, while Thomas Manns brought new funds of around EUR15M and assumed liabilities of EUR30 million.
“I am proud we were able to prove that it is no longer taboo for a bank to become a shareholder of a company whose recovery it trusts, but is a viable solution to exiting insolvency and to reversing the negative trend,” says Ana Maria Petrescu, manager of the loan restructuring department of RBS.
She says the German investor persuaded RBS that he knew what he was doing and put on the table a business plan that the bank considers realistic. “In addition, there is the benefit of the market rebound and the competitive advantages of the plants are obvious, including in terms of prices,” she adds.
She recalls that negotiations with Manns extended over 7 months, and there were also times when discussions got stuck and the parties were tempted to walk away from the deal.
“The approach we have taken, although structurally complex, has proven viable both economically and socially. For us the next step is to rebuild this group in the long term and turn it into a trusted provider for the most demanding clients in the industry,” says Thomas Manns, the majority shareholder of Astra Rail Industries.
The capacity of ARI plants is 90% covered by orders for some types of rolling stock. The investor’s main objective is to consolidate relationships with key clients in Europe and extend its markets in the Middle East and Russia.
(English version by Daniela Stoican)