Romanian Oltchim Hldrs Appoint New Board

The new board includes Constantin Roibu, Constantin Nedelcu, Grigore Craciunescu, Calin Constantin Istratoiu and Zaremba Wojciech.

Shareholders rejected Monday the proposal of its minority shareholder Germany's PCC, to revoke the plant’s general manager Constanin Roibu.

The company’s shareholders also authorized the executive management and the Board to counteract the accusations brought by PCC in the media. According to Oltchim, PCC is also opposing by any means any measures to recover the company.

PCC is against the proposal of conversion certain debts of the plant into shares, as well as the plans on requesting state aids, and intends to present to the authorities its own restructuring plan.

The plant’s turnover rose 11.3% on the year in 2008, at 1.946 billion lei (EUR1=RON4.2392). However, the plant reported RON225.64 million losses.

In 2008, the company’s activity has been seriously affected by the recent financial turmoil that led to lower export prices, by the lack of clients’ liquidity, the higher interest rates and the volatility of the Romanian leu‘s exchange rate versus euro, in the last months of 2008.

The plant is majority owned by the Economy Ministry, with a 53.26% stake, while PCC owns 12.89% of the shares.