PCC, the minority shareholder of the Oltchim plant, has proposed the Romanian government a bigger share capital increase than the one tied to the conversion of the claim which the AVAS has against the company, which would include all of the plant's debts. Mr. Wojciech Zaremba, the representative of PCC SE in Romania, told us: "The conversion would have been useful, if it had included all of the debts of the plant. Under the current circumstances, PCC will not participate in the share capital increase proposed by the Romanian state. Why invest our money into a void? Even if the share capital gets done, the Oltchim plant will be left with over 600 million Euros in debt, it owes 200 million Euros to Electrica alone. Furthermore, the company has no working capital, its environmental obligations amount to approximately 100 million Euros, than there are the debts towards the banks, to Salrom, to the CFR. We are worried that if we participate in this share capital increase, the Romanian state will make Oltchim insolvent".
According to the calculations made by BURSA, if it does not participate in the share capital increase, PCC will be left with approximately 0.5% of the shares of Oltchim.
Recently, the notice to attend of the Extraordinary General Shareholder Meeting (AGEA) of "Oltchim", of September 10th, which has on its agenda the approval of the share capital increase of the company. Thus, the share capital will be increased from its current size of 34,321,138.3 lei, to the value of 2,093,665,917 lei, by issuing a number of 20,593,447,790 new shares, each with a face value of 0.1 lei, through the conversion into equity of the debt of 1,128,647,772 lei it owes the AVAS, granting the right of preemption to the current minority shareholders, which will have the right to subscribe a total of 930,697,007 lei, according to the number of shares owned on their reg
