Romanian Insolvency Survivor Rafo Onesti Vies To Stay On Map

The management and majority shareholder at Rafo wish to present Boc with a memo and the arguments needed to remove the gridlock faced by the refinery and to avoid employee layoffs.

 

"We have requested this hearing given the still confused situation faced by the refinery, a unit that seems to remain unwanted, locally, by a series of political and economic factors, now added with the economic and financial crisis," Rafinorul union leader Ion Marian told MEDIAFAX.

 

According to him, Rafo currently has accomplished all elements included in the reorganization plan and has paid all financial debts included in the lender chart, as well as all current debts.

 

"Despite all these achievements, which we consider unique on a national level when it comes to reorganized companies, despite all measures unfolded, Rafo, for reasons beyond our comprehension, is kept in deadlock on the legal segment, thus management and the majority shareholder have come to show doubt regarding the continuation of the upgrade-investment program. Rafo is the only unit in the processing system that has paid all debts to the state’s consolidated budget and to the budgets of mayoralties and other lenders," Marian added.

 

Through the upgrade-investment program, managers said the refinery will keep active 1,000 employees, needed for operation after activity recommences. The refinery will contract works with local companies specializing in construction and outfitting and will issue orders for technological equipment from Romanian companies.

 

Rafo entered a state of insolvency in April 2004, and was, at that time, the largest debtor to the budget. In 2007, the state privatization authority lifted the restrictions imposed on the refinery’ shares, as the investments assumed in the privatization contract had been performed.

 

The refinery’s activity was ceased in February 2008 over a two-year interval, for the unfolding of an investment program worth more than EUR350 million. In the meanwhile, Rafo cut staff reaching a number of 1,200 employees.

 

The company has a distribution network formed of 290 affiliated and owned stations. Rafo shareholders decided in fall 2007 to rent the 33 company-held stations to Grizzly Petrol.