Oltchim halves its loss after one year of insolvency

Oltchim ends its first year of insolvency with smaller loss, but, at the same time, a smaller turnover. According to the 2013 financial report released today, the chemical plant has managed to reduce its loss within the past year, the preliminary results showing a deficit of approximately 285 million lei, compared with some 572 million lei in 2012.

The improvement is mainly due to a sharp reduction of the financial expenses, corroborated by a 63 percent reduction of the operating expenses. While the financial revenues maintain a similar level – 48 million in 2013 compared with 52 million in 2012, the financial expenditures narrowed, recording a major diminution of over 80 percent. Thus, Oltchim’s financial expenses last year were 56.6 million euro, whereas in 2012, they totaled 288.7 million lei.

However, the company’s turnover is significantly smaller than in the previous year, amounting to about 498 million lei, almost 35 percent less over 2012.

Oltchim which is a state-owned company has been insolvent since January 30, 2013, the Romanian authorities seeking to eventually complete its privatization, after some unsuccessful attempts. Oltchim S.A. creditors approved at the beginning of December 2013, the strategy  of Oltchim’s reorganization through which there was established a new trading company, Oltchim SPV S.R.L., as well as the selection procedure in view of aquiring Oltchim SPV shares.

As Govent has previously informed, Oltchim’s judicial administrators, Rominsolv and BDO Business Restructuring will thereby proceed with the selection of the biding offer for the acquisition of all the shares Oltchim S.A. owns in Oltchim SPV. The deadline has been initially established to be January 31, 2014, yet, following several requests from behalf of investors interested in participating at the company’s privatization it was postponed until March 28, 2013. Since the selection procedure of the binding offers was scheduled to be initiated on February, 3, this year, due to this delay, the other procedural deadlines will be postponed accordingly, too.