Oltchim: is MFC a parasite or a creditor?
actmedia.eu
'I reminded them that the IMF had suggested me to close Oltchim down and that I had opposed the idea. Here we are, six months later this July, with Oltchim close to break-even point, it will still see losses up to 700,000 euros, which is very little for its size and the scale of its previous losses. The IMF asked me the reason for Oltchim's visible improvement in the past six months and I explained that it got rid of the parasitic companies, has a long-term strategic thinking, also as concerns the workforce. I said that we also must observe the collective labor agreement, that we stuck to the insolvency calendar and that by September Oltchim will be ready for privatization, in the sense of having a special purpose vehicle built that is practically free of debt and the debt should remain with the old Oltchim. Then they asked about the position of the current shareholders, PCC and the Romanian state, and I replied that once the insolvency procedure was triggered Oltchim submits to the decision of its creditors, who are to decide the selling price and that they will get satisfied from the outcomes of the privatization,' Vosganian explained.
The next Quarterly results of MFC are due in a few days. Mr Smith will have to explain whether MFC was a "parasitic company" that got crushed in the restucturing or a real creditor that will "decide the selling price and get satisfied" from the sale. There better not be evasive answers as in the last CC. Investors need clarity over this situation. |
