Romania's Government analyzes possible solutions for Oltchim

According to media, the government who is the majority shareholder of the chemical producer Oltchim, is analyzing several options for the troubled company. Among these are insolvency and even bankruptcy. Based on the latest available info from Oltchim, Banca Transilvanias (TLV)...

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Romania's Government analyzes possible solutions for Oltchim



RBI - 24.01.2013

According to media, the government who is the majority shareholder of the chemical producer Oltchim, is analyzing several options for the troubled company. Among these are insolvency and even bankruptcy.

Based on the latest available info from Oltchim, Banca Transilvanias (TLV) exposure toward the company was around RON 154 mn. The loans were collateralized with mortgages and pledges on real assets. We remind that as of end of September 2012, TLV said that it had provisioned around 60% of its exposure toward the chemical producer. If Oltchim enter insolvency, it is possible that TLV will be forced to build up more provisions. Despite the fact that such provisions will be digestible for TLV during a single quarter, we view this piece of news as rather negative for TLV shares.

Source: bne


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