The receivers of Oltchim, which has been declared insolvent on January 30th, have succeeded in securing the much sought after financing, intended to set the foundation for increasing output to a profitable level.

Lawyer Gheorghe Piperea, one of the 7directors, said: "Piraeus Bank has accepted to grant 6 million Euros to Oltchim, and Banca Transilvania has agreed to lend it 2 billion Euros. Another seven million Euros may come from CEC Bank".

In order to be profitable, the plant needs to operate at about 65% of its capacity. The necessary financing was estimated at about 20-25 million Euros.

According to data published by the receivers (Rominsolv and BDO), Oltchim had an estimated turnover of 11 million Euros in June this year, up over February when it had a turnover of 5.4 million Euros. For the current month, the receivers of the plant expect the turnover to increase by 1 million Euros over the previous month.

The predicted utilization rate of the output capacity was 21.9% in June, up over February, when the occupancy rate was 6.02%. For the current month, the usage rate of the output capabilities was estimated at 23.52%. This information was published prior to securing the financing from the banks.

Also this month, the evaluation of the assets of Oltchim will be completed, which is important for the creation of Oltchim 2, an SPV (special purpose vehicle) which will comprise the plant's viable assets, the employees, the ongoing contracts, the intellectual property rights and the invention patents. Oltchim will own 100% of Oltchim 2, which will not have any debts.

According to some recent statements of lawyer Gheorghe Piperea, the creditors will receive the money from the sale of Oltchim 2, which will only cover part of the debt: "This isn't a compromise, it is a normal effect of insolvency. The money will be paid proportionally t