August 29 (SeeNews) - The creditors of Romanian insolvent chemicals producer Oltchim [BSE:OLT] agreed on Monday to extend the company's reorganization period by one year, the company said.
The request to extend the reorganization period was made by the company's judicial administrators consortium, Rominsolv and BDO Business Restructuring, Oltchim said in a statement filed with the Bucharest Stock Exchange, BVB.
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Last Wednesday, Oltchim launched an asset sale auction process for all or part of its assets grouped into nine bundles, and that expects to select investors by the end of 2016.
The deadline for the expression of interest is September 30.
Oltchim is under insolvency procedure since 2013 but in 2015 it posted better-than-expected revenues of 170.2 million euro ($193 million) and adjusted EBITDA of 17.7 million euro.
For 2016, Oltchim expects 176.5 million euro in revenues and a 23.9 million euro EBITDA.
In the first quarter of the year, Oltchim posted a gross profit of 1.3 million euro, after a 846,000 euro loss in the like period a year ago.
Oltchim has had several unsuccessful sale attempts in the past.
Throughout 2014, it failed two times to receive binding bids for the sale of Oltchim SPV, a special purpose vehicle that comprised its core business.
However, in 2013, it managed to sell its PVC processing unit Romplast for 7.75 million euro to Romanian company Dynamic Selling Group from Galati, Eastern Romania.
In October 2012 Romania unsuccessfully tried to sell its 54.80% stake in the company.
Oltchim is controlled by the Romanian state through the economy ministry with a 54.8% stake. Germany's PCC SE holds 32.3%, while the balance is owned by smaller shareholders. Its share capital stands at 34.3 million lei ($8.7 million/ 7.6 million euro).
Oltchim shares were trading up 2.34% to 0.3930 lei at 1631 CET on Bucharest Stock Exchange, BVB.
($=0.8941 euro)