Romanian Privatization Agency To Sack Avioane Craiova’s GM

AVAS asked Avioane Craiova’s employees not to worsen the plant’s situation and to allow the agency to privatize it in good conditions.

 

"The street protests will certainly not attract the potential investors," the plant announced Monday in its press release.

 

Avioane Craiova’s employees resumed protests on Monday morning, around 200 persons asking for Boldisor’s resignation.

 

The factory’s employees ceased work last week, for two days in a row, and protested in front of the plant dissatisfied for not having received their wages for two months. They ask for the general manager resignation.

 

Avioane Craiova is majority owned by AVAS, with an 80.97% stake.

 

On Monday, AVAS put up for sale Avioane Craiova. The participation documents and the final offers can be submitted until October 24. 

 

End-May, AVAS received three offers for its stake in Avioane Craiova from Italy’s Alenia Aeronautica, Czech Aero Vodochody and Bucharest-based INAV.

 

AVAS thoroughly analyzed the offers and selected AERO Vodochody in July, as it submitted the best financial offer, namely EUR16.3 million, of which, nearly EUR4.2 million for the 80.9% stake, EUR3.3 million for the working capital and EUR8.8 million for investments in the plant over a five-year period, of which EUR4.5 million in the first year upon the takeover.   

 

AVAS announced in Sept it would resume the sale process of Avioane Craiova and asked the company’s evaluator to immediately update the evaluation report of the airplane maker’s assets, to allow the launch of the new sale offer until October 20.

 

End-September, AVAS announced it ceased negotiations with Aero, as the offer’s validity period expired before Aero accepted the contractual clauses imposed by AVAS.

Avioane Craiova was set up in 1972 and is the country’s sole military aircrafts maker.