Romanian Plane Mkr Avioane Craiova Asks For RON14M Bailout

Peta said he held talks on Tuesday with Economy Minister Adriean Videanu and the Minister of Transportation Radu Berceanu on the company’s situation, and that he requested their support to salvage the plant.

 

“We’ve requested a bailout AVAS is able to give to companies with difficulties, particularly since we undergo privatization proceedings. True, the amount we’ve requested, of RON14 million, might be considered big, but we certainly need it to survive over the next six months,” Peta said.

 

“The money is to ensure the company’s activity, to pay suppliers and salaries, so that we can avoid cases when any service or material supplier can ask for insolvency procedure,” he added.

 

The Romanian government recently decided to transfer several companies from AVAS’ portfolio to the ministry of economy, including Avioane Craiova.

 

The transfer, however, is yet to be completed and the two public institutions decline responsibility.

 

“Unfortunately, things are moving slowly, because the transfer from AVAS to the (economy) ministry has not been made yet. AVAS tells us they can no longer help us regarding the requested aid, as the company is not in their portfolio any more. The ministry has no money to grant such aid. We just might be left to starve like the child with two mothers,” Peta said.

 

The union leader said employees could resume protests, unless a solution is found.

 

Romania’s privatization authority AVAS put Avioane Craiova up for sale in October last year, following a previous failed attempt at privatization.

 

In December 2008, AVAS postponed for the second time the bid submission deadline until January 30, 2009, from the previous December 10 deadline.

 

Three investors have acquired task books for the bid, namely Germany’s AEROTEC Engineering, Italy’s Alenia Aeronautica, and the Romanian unit of US-based EPS Inc Tinton Falls, but only Alenia submitted an offer by January 30.

 

According to AVAS, the privatization process of Avioane Craiova will continue, following the discussions with the Economy Ministry, which is yet to enlist itself yet as majority shareholder of the airplane maker.