* In exchange for financing or guaranteeing the amount of 50 million Euros, an investor would receive a right to exercise the option to acquire "Oltchim 2"
The receivers of Oltchim (Rominsolv and BDO) are proposing to investors interested in acquiring the plant of Vâlcea to participate financially in the stage which precedes the reorganization.
As a result, Oltchim can get the amount of at least 50 million Euros it needs to increase output to a profitable level, which will keep the plant operational until autumn, guarantees its chances to secure orders until 2014 and can successfully implement the reorganization, which would allow the switching of the company to private ownership to make it a success for the government as well as investors.
The solution for the rescue of Oltchim proposed by the directors, which we hereinafter present exclusively, assumes that, in exchange for the option of participating in the reorganization, the pre-selected investor would assume the repayment of the amounts to be paid to the creditors that have accepted to provide financing for the working capital of Oltchim SA, or to lend to Oltchim SA the amount of at least 50 million Euros needed for working capital.
For each of the ways of taking on the financing, the pre-selected investor will have the position of a creditor which will benefit from the privilege of the current receivable resulting from the continuation of the insolvency procedure. Also, with the agreement of the creditors' committee, collaterals in favor of the pre-selected investors, out of the list of assets of Oltchim.
With the agreement of the creditors' committee, the investor will be allowed to take over the management of "Oltchim 2", regardless of whether they will be designated as the winners in the reorganization process or not.
The new company, "Oltchim 2" will be fully owned by
