According to SeeNews, Romania’s deputy Economy Minister Karoly Borbely said local banks BCR and Banca Transilvania are willing to become shareholders of the local chemical group Oltchim via debt-for-equity swaps.”BCR gave its accord in principle regarding the conversion into shares of half of a [72.4 million euro] credit line extended to Oltchim. Banca Transilvania is also willing to become Oltchim’s shareholder by converting 7.0 million euro, part of a credit line,” Ziarul Financiar (www.zf.ro) quoted Borbely as saying.
On October 7, Oltchim released a statement saying it would convert into equity part of a loan it has borrowed from BCR without disclosing details of the loan and the equity the bank would acquire. The company recalled the statement on October 11 saying it is reconsidering the announcement.
The Economy Ministry announced last month the state plans to privatise Oltchim by selling the majority stake. Mediafax has reported that two investment funds, one of which from the U.S., are interested in buying stakes in Oltchim.
