Investors Not Interested To Buy Romanian Ball Bearing Plant Rulmentul Brasov
The auction to sell the plant was to be organized Tuesday, May 6, but no investor submitted the necessary papers and the participation guarantee.
The plant was put up for sale for EUR70 million at the first three auctions, but the price afterward lowered by 10%.
Teodor Nicolae, executive manager of RVA Insolvency, one of the plant’s liquidators, stressed he is looking into ways to capitalize the plant, namely, to set up a new auction in the same conditions and at the same price or to make some changes in the sale strategy.
Early April, Andrei Cionca, associate coordinator with Transilvania Insolvency House, the other liquidator of Rulmentul Brasov, told MEDIAFAX that several groups of companies, among which Romanian and foreign investment funds, expressed interest in buying Rulmentul following a 10% decrease in the starting price at the fourth auction.
In October 2007, the Brasov Courthouse, central Romania, designated the consortium formed of RVA Insolvency Specialists and Transilvania Insolvency House as the plant’s temporary liquidator.
The liquidator, in its turn, hired last year an evaluation company, which drew up a report on the value of the plant’s assets.
The evaluator’s report indicates that the plant’s plot of land, stretching onto 441,039 square meters, was assessed at EUR39.69 million.
Based on the report, the plant’s activity can be unfolded on a plot of land of nearly 270,000 square meters, while the remaining 17 hectares can be used for other purposes.
The plant’s buildings were assessed at EUR17.28 million, while its technical installations, machinery and devices were assessed at EUR12.36 million.
The plant has 50.89% of its shares in the hands of the country’s national privatization agency AVAS.