Thursday, November 26, 2009

Romania embarks on fifth attempt to sell Avioane Craiova

Romania will try for a fifth time to sell a majority stake in the loss-making state-owned military aerospace firm Avioane Craiova, it emerged on 25 November.

The Romanian Ministry of Economy's Office of State Ownership and Privatisation in Industry formally asked potential investors to submit expressions of interest in the acquisition of an 80.9 per cent stake in the firm, which is the sole producer of military aircraft in the country.

The move comes after attempts to sell Avioane Craiova on two separate occasions - to Alenia Aeronautica and Aero Vodochody - floundered during the past year.

Responsibility for Avioane Craiova was shifted to the Ministry of Economy in October this year following the apparent failure of Romania's Authority of State Assets Recovery (AVAS) to dispose of the company.

AVAS attributed the collapse of the negotiations with Alenia to that company's concerns over Avioane Craiova's historical debts, which were estimated at EUR18 million (USD26.9 million) as of July this year.

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