Winner of failed CFR Marfa privatization still awaits guarantee refund by the Romanian state

Romanian railways company Grup Feroviar Roman (GFR), which was the winner of the failed CFR Marfa privatization, says it didn’t expect the formalities to refund the EUR 10 million guarantee deposited to take so much time. In the company’s opinion, this could be a technical issue that the Romanian Ministry of Transport should correct as quickly as possible. “Even the minister of transport said that, according to the privatization contract, the parties should be reinstated in the initial situation, which also includes releasing the guarantee letter, a point of view also supported by the Ministry of Transport’s consultants in the privatization process. (…) If the privatization couldn’t be completed, both the escrow account of EUR 20.2 million and the EUR 10 million guarantee must be released,” reads a GFR statement. “Considering the privatization process ended in October and the escrow account was already released, Grup Feroviar Roman didn’t expect the formalities to take so much time, but trusts that representatives of the Ministry of Transport will complete the procedure as soon as possible, to allow the guarantee to be refunded, under the law”. The company’s reaction came soon after the Romanian minister of transport Ramona Manescu said during a talk show at local TV station Pro TV that the ministry hasn’t returned GFR the EUR 10 million that the company paid as a guarantee during the privatization process. GFR was declared winner in CFR Marfa’s privatization process in June this year, pledging to pay EUR 202 million for 51 percent stake in the company. However, the transaction couldn’t be completed by the October 14 deadline. According to GFR owner Gruia Sandu, some of the lenders of CFR Marfa did not agree to change the company’s shareholder structure and the Competition Council did not have enough time to green light the takeover. Finance Minister, Daniel Chitoiu, said in November this year that the privatization process of Romania’s railway freight company CFR Marfa will be completed in the first half of 2015, after the company completes a restructuring program. Irina Popescu, irina.popescu@romania-insider.com