SAA advises VTB Bank on €124 milllion loan to Chimcomplex

Stratulat Albulescu Attorneys At Law acting as co-counsel with the Prague office of White & Case has assisted VTB Bank (Europe) SE on a financing in the amount of EUR 124 mil granted to Chimcomplex S.A. Borzesti for the acquisition of several asset bundles from Oltchim SA.

The SAA team, led by Head of Banking & Finance Costin Teodorovici provided legal assistance on matters of Romanian Law in relation to transaction structuring and the Romanian security package, as well as in relation to certain other relevant matters including insolvency, real estate and environmental law issues. Andrei Balus (Senior Associate - Banking & Finance), Irina Petre (Partner - Head of Energy & Environment), Laura Neacsu (Managing Associate - Real Estate & Environment), Florin Dutu (Partner - Head of Dispute Resolution including Insolvency), Corneliu Popa (Partner - Real Estate) and Ana Kusak ( Partner – Competition & Intellectual Property) were also part of the team. The White & Case team was led by English law partner, Jonathan Weinberg.

The financing resulted in the context of an asset purchase agreement signed at the end of 2017 between Chimcomplex S.A. Borzesti and Oltchim S.A for a total amount of EUR 127 mil, regarding the purchase of important bundles of assets used for producing various chemical products.

Through this financing granted by VTB Bank (Europe) SE together with another major international bank, Chimcomplex S.A. Borzesti has managed to procure the funds required for the full payment of the price of the assets, thus being able to close the transaction.

Oltchim S.A., the largest Romanian chemical company and which is controlled by the State, has been in insolvency since the beginning of 2013 and the sale of its assets has been conducted according to a restructuring plan, approved by the company’s creditors – as part of the privatisation process. The restructuring plan shall continue to apply with regard to the remaining assets.

With this acquisition Chimcomplex S.A. Borzesti, a company founded in 1954, has now become one of the most important chemical manufacturers in the region.