Romania's tax collection agency ANAF has reportedly asked in court the bankruptcy of insolvent local refinery Rafo.

The request, if endorsed by the court, means that Rafo’s assets will be sold under open auction at liquidation value.

The court-appointed managers have not observed the recovery programme (approved by creditors) and furthermore the company kept accumulating debts to the state budget, ANAF argued, according to local Profit.ro.

The main purpose in the reorganisation programme that was supposed to be implemented by the court-appointed manager was the sale of the industrial platform. Auctions have been organised with starting prices of USD 59.5 million (plus VAT), USD 50.5 million and USD 44.6 million respectively.

Rafo owes RON 330 million (USD 70 million) out of which RON 305 million to one of its former owners: Petrochemical Holding, registered in Austria and controlled by Russian businessman Iakov Goldovski.

To convince prospective investors of Rafo’s market value, its managers drafted a development plan based on the refinery’s strengths and opportunities: it is located close to the country’s eastern border and could deliver petroleum products on the markets of Moldova and Ukraine. The refinery could deliver valuable raw materials for Chimcomplex and other chemical plants on the Borzesti industrial platform. Indeed, the refinery was designed as part of an integrated petrochemical platform. But it has not operated over the past ten years.

editor@romania-insider.com