Romanian Republica’s Assets Auctioned Off For EUR48.5M

RVA Insolvency Specialists, the liquidator of Republica plant in Romania’s capital Bucharest, will organize on March 31 an outcry bid to sell the factory’s assets, for a minimum price of EUR48.5 million, net of VAT.

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The liquidator announced it plans to sell a 25.8-hectare plot of land and 133 industrial buildings with a built area totaling 78,000 square meters. The land was evaluated at EUR39.8 million.

Republica entered bankruptcy procedures seven years ago due to high debts.

RVA Insolvency Specialists manager Teodor Nicolae told MEDIAFAX that Republica's debts total EUR62 million, of which EUR36 million to the Finance Ministry.

End-2007, the liquidator sold the plant's equipment and production lines for around EUR18.71 million.

In 2003, Republica was sold to a consortium made up of Moody-Rom Trading Romania, US Moody International Trading, Russia's OOO Temerso and ZAO Compania Temerso, for EUR1.9 million, but the investors did not fulfill its financial engagements, so that the company's situation has gradually deteriorated to bankruptcy.

In November 2004, the Bucharest courthouse annulled the privatization contract and retransferred the company into state ownership.

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