Big Romanian refinery operator goes bankrupt

The company that operates the Rafo Onesti refinery, one of the biggest in Romania, will be liquidated after the Bacau Court ruled its bankruptcy on Thursday, September 19.

The bankruptcy came after repeated attempts to sell the refinery failed. The company’s latest judicial reorganization plan expired on August 22.

CITR, one of the biggest insolvency management firms in Romania, was appointed as the company’s liquidator.

“We must be realistic and note that Rafo is a complex niche project, with long-term return of investment and implications in several (economic) branches […] What is needed is a large and powerful investor, who can be agile in an uncertain market, most likely an international player,” said Vasile Godinca-Herlea, CEO CITR.

The insolvency house’s representatives say they will try to sell the refinery as a whole and, only if they don’t find a buyer for it, will consider selling parts of it.

Founded in 1956, during the communist regime, the Rafo refinery has the capacity to process 3.5 million tons of raw materials per year. The refinery was privatized in 2001, under controversial circumstances. Since then, the refinery has changed owners several times.

The refinery went through judicial reorganization between 2004 and 2010 and, in 2008, was shut down because it couldn’t renew its operating license and failed to comply with environment requirements. In 2015, the company’s owner at that time, reportedly a Russian investor, decided to sell the refinery for scrap. However, the process was not carried out.

(Photo sourse: CITR)