Oltchim Ramnicu Valcea, which has declared insolvency, has acquired gas from Romgaz through a contract worth 33.15 million lei (about 7.3 million euro), one of the two largest gas producers in Romania for the July 1st 2017 June 30th, 2018 period, says a release of Romgaz.

Payment will be made in advance, with an invoice adjustment due within 30 days from the issued date, and with penalties of 0.10% from the total contract value per day, shows a press release Romgaz sent the Bucharest Stock Exchange (BVB) on Wednesday. Furthermore, the two companies have signed a contract worth 24 918 lei, for the same purpose, according to News.ro.

Oltchim started the procedure of selection for a new gas supplier in May, after Arelco Power, their former supplier, announced the company that it is possible to declare insolvency.

“Following the notification sent on May 16th by the natural gas supplier, Arelco Power, regarding the possibility that, on 19 May, the company Arelco Power SRL might declare insolvency, and given the very short deadline Arelco gave, Oltchim followed the normal procedures of mutual correspondence at that time and strictly with respect to their commercial relationship, requested them to not interrupt the gas supply for a reasonable period of about two months”, Oltchim informed at that time, according to the source.

Oltchim entered into insolvency on January 30, 2013, and the consortium of RomInsolv SPRL and BDO Business Restructuring was appointed trustee.