Romania Will Appeal Rompetrol’s Actions In Court - PM

Romania will appeal in court oil company Rompetrol’s actions that do not comply with the law and will recover the debts by court orders, Prime Minister Emil Boc said Friday.

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Imaginea articolului Romania Will Appeal Rompetrol’s Actions In Court - PM

Romania Will Appeal Rompetrol’s Actions In Court - PM

"The Romanian state will appeal in court all actions made by Rompetrol that are not according to laws in effect," Boc said.

The Romanian authorities Thursday rejoined the shareholder structure of oil refinery Rompetrol Rafinare (RRC.RO) with a 44.69% stake, after the latter failed to redeem in cash a 2.3 billion lei (EUR1=RON4.2674) convertible hybrid held by the government.

KazMunayGas decided Thursday to convert into shares the bonds issued by Rompetrol in 2003 and not redeemed from the state, Rompetrol Rafinare said in a statement.

On Thursday, Rompetrol Rafinare also approved a RON1.97 billion capital increase to RON4.41 billion. Thus, the company will issue 20.65 billion new shares with a face value of RON0.1118.

Following the capital hike, the Rompetrol Group will directly and indirectly own over 54.6% in Rompetrol Rafinare.

Rompetrol Rafinare, owned by Dutch-based Rompetrol Group, was supposed to repay the Romanian authorities a historic debt of EUR570 million by September 30.

The debt was issued by Petromidia refinery in 2003 and was converted into seven-year bonds by government decision.

On September 10, Romania's tax authority ANAF seized several plots of land, facilities, and subsidiaries' shares owned by Petromidia as security until the company repays its debt to the state.

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