Oil and gas company Rompetrol Group may issue bonds or arrange a loan if it can agree with the Romanian government on repaying back taxes, according to Chairman Tolegen Bozjanov, quoted by Bloomberg.

Rompetrol, controlled by KazMunaiGaz, offered in January to pay part of the EUR 515 million euros it owes to the Romanian state and to use the remainder to upgrade its Petromidia refinery. The company converted some of its debt into shares in the Petromidia refinery last year, giving the state a 44.7 percent stake in the unit.

The state is challenging the debt-for-equity swap, saying Rompetrol still owes the full amount in cash or a full conversion of all debt for equity. KazMunaiGaz took over Rompetrol in two deals in 2007 and 2009, for some USD 1.75 billion, from Romania investor Dinu Patriciu.

The debt was issued by Petromidia refinery in 2003 and was converted into seven-year bonds by government decision, which should have been repaid at the end of September last year.

editor@romania-insider.com