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Thursday, January 06, 2005
Business in Romania blog
Off-road carmaker ARO will become State property once again as the U.S.-based Cross Lander has failed to fulfill its obligations as stipulated in the privatization contract.
The factory will therefore be taken over by The State Assets Resolution Authority (AVAS), which will most likely initiate liquidation procedures.

At this moment the factory is idle and has been disconnected from natural gas and electricity networks. The workers’ salaries are four months overdue.

"Today (i.e. yesterday) is the deadline by which they (the buyer) have to pay three million dollars for the operating capital and 600,000 dollars for environment care. Well, they might come up with a payment order tomorrow, but I don't think they will. I will not extend the deadline even by a single day. I have warned them several times that January 5th was the final day," AVAS president Mircea Ursache said.

AVAS' predecessor, APAPS, sold ARO for 150,000 USD early last year and wiped off 40 million USD worth of debts upon privatizing it.

The new owner sold a key asset - the Mould Works - for 2.5 million USD.AVAS deemed the sale illegal and demanded the money.

Cross Lander was supposed to make the payment by yesterday.

Posted by Iulia Rasoiu : 1/06/2005 09:48:00 am ARO - back to State
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