Romania’s Avioane Craiova To Lay Off 300 Employees By Yr-End

In order to apply the layoff decision, Avioane Craiova must first ensure the production capacity for the defense sector and the guarantee and post-guarantee service for all the products delivered to the Defense Ministry and to notify the state office for special problems OCSPS about its reorganization plans.

Avioane Craiova must also take into account the amounts of money necessary to apply the managerial, technical and technological reorganization measures, so that they will not exceed the company's 2009 budget.

The second phase of the layoff decision will take place next year and the number of dismissed employees will be established following the Board's analysis.

Avioane Craiova estimates 86% higher revenues in 2009, at 35.83 million lei (EUR1=RON4.2658), from RON19.27 million a year earlier, planning to switch to a RON6,000 net profit, from a RON16.5 million loss in 2008.

The Economy Ministry owns an 80.97% stake in Avioane Craiova.

In March, the Government authorized Romania's Privatization Authority AVAS to continue the privatization of Avioane Craiova, the mandate ceasing if the privatization procedure were ceased by October 14, 2009, at most.

After a failed attempt in 2008, AVAS resumed the privatization on October 20, 2008. Italy's Alenia Aeronautica was the only bidder in the takeover of Avioane Craiova, after submitting its offer by January 30, the deadline initially set up by AVAS.

The plant has a share capital of RON2.28 million split up into 915,484 shares with a face value of RON2.5.

On the Rasdaq market of the Bucharest Stock Exchange, Avioane Craiova's shares closed FRidat at RON6 per unit, up 36.67% compared with the reference price, so that the company's market value stood at RON5.49 million.

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