Romania's Oltchim privatization deadline delayed, after businessman goes to court over debt included in privatization

The companies representing Gazprom have asked for a two week delay in the privatization process for Romania's Oltchim, which was due to end on September 17, with a bid set to be organized on September 18. Gazprom has put off making a bid until the matter is resolved. The delay was required to analyze the impact of the litigation, which has occurred in the last couple of days, according to Remus Vulpescu, the head of the Office of State Ownership and Privatization in Industry (OPSPI). However, the privatization commission decided to delay the deadline for submitting offers only until Thursday this week (September 20 ). By September 22, Romania needs to send the International Monetary Fund (IMF) information about negotiations with the investors.

Media mogul and politician Dan Diaconescu, the president of the Dan Diaconescu People's Party, asked the court to cancel the Emergency Ordinance that approved the privatization procedure, which now includes a RON 1.8 billion (just over EUR 400 million at the current exchange rate) debt to the Authority for State Assets Recovery (AVAS). Diaconescu submitted two more requests on September 17, asking for the cancellation of privatization procedures and the suspension of all privatization measures until the court has decided on the first request. The privatization commission went to deliberate whether to delay the deadline for submitting offers. By noon today (September 17 ) , three companies had submitted offers for Oltchim: PCC SE, already a shareholder in Oltchim, Dan Diaconescu and a third from businessman Stefan Vuza, via Chimcomplex and Aisa Invest. The head of OPSPI was hoping for three offers, including one from a Russian investor. Dan Diaconescu is the owner of the OTV TV channel and a politician. editor@romania-insider.com (photo source: sxc.hu)