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MFC Industrial Ltd. Message Board

  • k.moore85 k.moore85 Feb 4, 2013 2:38 PM Flag

    "PCC and MFC Commodities are interested in the privatization of Oltchim"

    German company PCC and MFC Commodities SUA (the Austrian branch) have expressed their interest in the future privatization of Oltchim Râmnicu Vâlcea, said Gheorghe Piperea, a partner at Rominsolv, and receiver of the plant, together with BDO Business Restructuring. PCC is a minority shareholder in Oltchim, with over 30% of the share capital, and MFC Commodities is one of the creditors of the company.

    According to some sources from the plant, trader MFC Commodities has an older contractual relationship with Oltchim and allegedly has about 40 million Euros in debt to recoup. MFC Commodities offered to lend this kind of money to Oltchim, in order to allow it to resume its production capacities, through a loan which the trader may take out from Erste Bank, our sources also say. Constantin Roibu, the former CEO of Oltchim, declined the offer.

    Sounds like smith has been busy....wish I could post link but apparently yahoo doesn't like that anymore

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    • Five vendors will work with Oltchim lohn
      Capital Market
      27/03/2013
      Five suppliers are interested to work with Oltchim lohn, sources from the Ministry of Economy. First announced their interest in a month ago, are CCP MFC Commodities. Receivers of the plant is in advanced talks with suppliers who want to continue working with the company Valcea, say our sources, who told us that soon will be undertaken contracts.

      Meanwhile, our complete submission to the European Commission for obtaining the information necessary to aid rescue Oltchim (about 20 million). Authoritative sources in the Ministry of Economy told us that the authorities explained to the Commission that it was the behavior of shareholders, suppliers and banks to Oltchim and showed that neither the state nor the providers of private traders and banks have made it difficult factory claims garantaten though.

      In data submitted to the European Commission, the State representatives have explained all creditors Oltchim prudent behavior: "A PricewaterhouseCoopers report last year that enforcement of pledges on plant assets would have major creditors a recovery rate up to 10 to 12 % of these debts accumulated by Oltchim.'s why all private and public creditors had been cautious and not to mass foreclosures. Commission data available and the impact that would have closed Oltchim that impact social impact on the local and regional economy, the impact on GDP and trade deficit disappearance of a major part of petrochemicals. "

      The authorities have sent the Commission that the liquidation Oltchim has higher costs than insolvency to reorganize and privatize part of the plant viable Valcea, also said sources.

      Currently, the documentation to obtain approval for state aid is currently under analysis. Commission must find that Oltchim not benefited so far from aid. Receivers of plant (BDO Business Restructuring and RomInsolv) are in negotiations with creditor banks to get a new loan of 10 million euros. Oltchim working capital needs about 40-45 million to operate at 60% capacity level, according to authorities would ensure profitability.

      • 1 Reply to k.moore85
      • FYI - From the wiki....looks like a nice asset to take over if it can be gotten cheaply enough...yes?
        So...why is this stock off 10-15% from it's highs with the rest of the market on a tear??

        "Oltchim S.A. Ramnicu Valcea was one of the largest chemical companies in Romania.[5] It provides chemical products since 1966 and it is the most important exporter on Chlorosodics, Polyether Polyols and Propylene Oxide markets in Eastern and Central Europe. Besides this, it is the second PVC producer in the area.[6]
        It is a very important employer in the area of Ramnicu Valcea, with no less than 5000 employees.
        They promote commitment to environment and re-technologization for the safety of the surroundings and of their employees.
        In 2009 and 2010, the company had to lower production and lay off employees because of the financial crisis and it became one of the first companies to receive aid from the government.[7]
        In 2012, the company was declared bankrupt."

        Sentiment: Strong Buy

    • Source: BURSA On Line, ediţia din 04.02.2013:

      "PCC and MFC Commodities are interested in the privatization of Oltchim"
      Wojciech Zaremba - one of the special administrators of the plant

      Rescue package and state guarantees through Eximbank for the resumption of the plant's operation

      German company PCC and MFC Commodities SUA (the Austrian branch) have expressed their interest in the future privatization of Oltchim Râmnicu Vâlcea, said Gheorghe Piperea, a partner at Rominsolv, and receiver of the plant, together with BDO Business Restructuring. PCC is a minority shareholder in Oltchim, with over 30% of the share capital, and MFC Commodities is one of the creditors of the company.

      According to some sources from the plant, trader MFC Commodities has an older contractual relationship with Oltchim and allegedly has about 40 million Euros in debt to recoup. MFC Commodities offered to lend this kind of money to Oltchim, in order to allow it to resume its production capacities, through a loan which the trader may take out from Erste Bank, our sources also say. Constantin Roibu, the former CEO of Oltchim, declined the offer.

      Last week, BURSA exclusively reported that businessman Ştefan Vuza, who, in September, participated in the call for bids for the acquisition of the majority stake in Oltchim, through Aisa Invest and Chimcomplex Borzeşti, is still interested in the takeover of the plant of Vâlcea.

      Mr. Vuza told us: "In September, after the installation of the new government, I have sent a letter to PM Victor Ponta expressing interest in the privatization of Oltchim. In January, I had several talks with the Ministry of the Economy. I am still interested in the privatization of CS Oltchim Râmnicu Vâlcea, if the company is rid of its debts, of the contracts with the leech companies, and if it successfully restructured. I don't we will see any concrete in less than a year, in the insolvency process which I hope will end with a reorganization and not with a bankruptcy".

      Lawyer Gheorghe Piperea told us that on Friday, he participated in a meeting with Minister of the Economy Varujan Vosganian, with the suppliers and lenders of Oltchim, as well as with PCC: "Following the meeting, it was agreed that Wojciech Zaremba, the representative of PCC in Romania, will be one of the special administrators of Oltchim. The other special administrator will be appointed by the Ministry of the Economy. As you know, PCC has expressed its desire to be involved in the administration of the plant during the insolvency".

      "I think that it a good thing for one of the special administrators to be a representative of PCC because that means there will be no surprises from the minority shareholder. PCC will support the reorganization process, including through supplying raw materials, and will support the approach of the Romanian authorities to obtain the approval of the European Commission for the state aid which will be granted to Oltchim".

      The receiver of Olchim told us that banks support the reorganization of the plant and that the aid of the state will consist of a rescue package of about 20 million Euros and the granting of letters of bank guarantee issued by Eximbank for loans of 25 million Euros. Thus, the working capital will be secured to allow Oltchim to resume production at full capacity.

      The notification of the state aid for Oltchim has not yet been sent, as there are still talks and information exchanges between the Competition Council and the European Commission on the final form of the documentation.

      Gheorghe Piperea also told us that he talked to the utilities providers of Oltchim, whom he assured that they would get back the amounts they are owed, because according to the legislation in effect, the holders of such claims get paid before the holders of other types of claims. Oltchim will have all the utilities available during the insolvency period.
      ALINA TOMA VEREHA (Translated by Cosmin Ghidoveanu)
      04.02.2013

      SC Oltchim SA will pay its current invoice out of its own production, a press release of the Ministry of the Economy states.

      PCC has committed to supply the raw materials needed for the adequate functioning of the plant and to support the initiative of the Ministry, including by lobbying in Brussels. The creditors of Oltchim, especially commercial banks, have agreed to this solution, as they want to be part of the entire process for the rescue of the plant.

      Also, lawyer Teodor Cuzino, a representative of MFC, a creditor of Oltchim, said that the latter could become a strategic investor in that case.

      Also on Friday, Minister of the Economy Varujan Vosganian, had talks with the management of the Competition Council, where the procedures and the steps to follow for fulfilling the requirements of the European Commission for the state aid of 20 million Euros for Oltchim. Together with other representatives of the relevant investors in Oltchim, minister Vosganian intends to travel to the European Commission to discuss this topic with the vice-president of the European Commission, Joaquin Almunia."

      • 1 Reply to olgaoldenburg
      • PCC SE raises to 32% stake in Romania's Oltchim
        January 9, 2013 13:49 CET

        Print

        BUCHAREST (Romania), January 9 (SeeNews) - German chemicals, energy and logistics group PCC SE said it raised to 32.3% its holding in Romanian chemical company Oltchim [BSE:OLT] by acquiring indirectly 14.02% from Carlson Ventures International.

        The deal, whose price was not disclosed, involved the purchase of all the shares Carlson Ventures held in Cyprus-based Polyolt Holding on January 7, PCC said in a statement on Tuesday.

        PCC SE controls directly 62,870,262 shares equal to a 18.3182% stake in Oltchim. It secured its first stake in the Romanian organic, inorganic and macromolecular products maker at the end of 2007 in a drive to strengthen its footprint in the country. It has repeated stated its interest in increasing further its holding and placed a bid in Oltchim's privatisation tender.

        Romania tried to sell its 54.8062% stake in October 2012. Local journalist and politician Dan Diaconescu won the auction for the stake placing the highest bid, 203.149 million lei ($60.44 million/46.07 million euro), however the deal was cancelled as he had no financial resources to foot the bill.

        Olthicm reported a net loss of 278 million lei on a turnover of 1.53 billion lei in 2011.

        (1 euro = 4.4095 Romanian lei)

 
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