Other EUR40 million, for the working capital, adds to the above-mentioned amount.
“Oltchim S.A. informs shareholders that the asset sale agreement with Chimcomplex S.A. Borzesti has been completed, by collecting in full on 07.12.2018 the transaction price and by the transfer of the ownership right over the assets starting with 08.12.2018,” Oltchim said in a statement on Monday.
The bundles of assets transferred to Chimcomplex S.A. include Chlor-alkali, Oxo-alcohols, Polyols, Site Services, Wagons and VCM / PVC 1. The assets include land, buildings, ongoing investments, intellectual property rights and other movable assets mainly representing machinery, equipment, technologies and any other similar goods required for the production process.
Also, a number of 1,164 employees accepted the conclusion of individual labor contracts with the buyer Chimcomplex S.A.
“Following this transaction, Oltchim S.A. will remain with mothballed assets for which the procedures provided by the Reorganization Plan will continue,” the statement also reads.
Oltchim Ramnicu Valcea reported a 16% higher turnover, of RON833 million, and a 110% higher net profit, of RON84 million, year-on-year in January-September 2018, the company’s best nine-month results since going insolvent.
Oltchim SA has been under insolvency since January 2013 and the consortium made up of Rominsolv SPRL and BDO Busines Restructuring SPRL was appointed judicial administrator. At the end of 2016, the company set off the sale process of nine assets bundles within the reorganization stage of the insolvency proceedings.
In the fall of 2017, Chimcomplex had bought five whole assets bundles and partly one of Oltchim.
Chimcomplex is part of Romanian industrial group SCR, controled by businessman Stefan Vuza, and operates exclusively in the field of chemical products manufacturing.
Chimcomplex has obtained financing for the acquisition of Oltchim’s assets from Swiss-based Credit Suisse, jointly with Russian group VTB Bank Europe, through the Frankfurt division, SCR Group and Tricon Energy.