ECONOMICS - January 6th 2004 The all-road vehicle maker ARO-Campulung could turn today again into state property.
Last night, at midnight, was the dead-line for John Perez, the owner of Cross Lander buying the Romanian company, to pay the 3.6 million dollars for the shares he got as part of the privatization deal.
By CATALIN BUDESCU
BUSINESS. John Perez got 5.1 million dollars after selling the Tolls & Molds Works of the ARO Campulung all-road vehicles AVAS, the Agency in charge with selling the state owned companies could take once again ARO-Campulung on its list of companies for sale, but its value had already been damaged by the unlawful sale of the Tools & Moulds Section which Perez performed for 5.1 million dollars.
"The probability for Cross Lander to make due its obligations is close to null," stated a source at AVAS. This will mean that the Romanian state will get back 68.7% of the companyâs shares in its lawful possession and will put it on voluntary liquidation.
This means that the privatization contract with Cross Lander will be scraped and Cross Lander will be asked to pay damages worth 5% of its value. AVAS will also ask Cross Lander to give back the money it took from selling the Tools & Moulds Section of the company, and also pay damages for not making due its promise to launch a new all-road model to be made at ARO Campulung.
Last fall Perez made public statements that the work at ARO Campulung would soon be resumed. "I will give him time till January, to make due on his promises," said then Mircea Ursache, head of the AVAS. Perez was supposed to invest 3 million dollars in retooling the company, by 26 September. "That would be his last chance to prove that he is serious about his investment. If he will not comply with the contract provisions, the contract will be scraped and the company will en
