Oltchim Plans New Restructuring Scheme

04.15.2011 By Andrei Circhelan

Romanian state-owned chemical company Oltchim Ramnicu-Valcea (OLT.RO) plans a new restructuring scheme, since the current one is deemed too slow and ineffective, according to the agenda for the shareholder meeting on April 28.

Romanian state-owned chemical company Oltchim Ramnicu-Valcea (OLT.RO) plans a new restructuring scheme, since the current one is deemed too slow and ineffective, according to the agenda for the shareholder meeting on April 28.

In addition, the company wants to conclude a 15-year contract for the purchase of industrial gas from Linde Gas Romania, a subsidiary of German group Linde.

Shareholders will also discuss several propositions made by minority holder PCC SE, including a ban on cumulating the board president position with the general manager position, as well as the possibility of an alternative development plan for Oltchim, which would exclude the petrochemistry assets at the Arpechim refinery.

PCC SE also requested the dismissal of company general manager Constantin Roibu, as well as the cease of sales to clients registered in fiscal havens such as Cyprus, Switzerland and the Cayman Islands, without shareholder approval.

Oltchim bought the petrochemistry operations at Arpechim from oil company OMV Petrom (SNP.RO) in January 2010.

Authorities said at that time they are negotiating the purchase of Arpechim refinery operations as well. Petrom later shut down the refinery, "for lack of a credible buyer" with expertise and financial resources to run the refinery.

Oltchim shares were trading early Friday at some 0.48 lei (EUR1=RON4.1021) per unit, up 2.04% on the day.

The company is 54.79% owned by the state, while PCC SE holds a 12.15% stake.