Romaero dispute remains unresolved

Published: 4/26/2000

Britten-Norman the possible buyer of Romanian producer Romero went into administrative receivership earlier this month, although it is expected that a new buyer will be found in a matter of days according to its receiver London based Levy Gee. It is unclear at this point what effect the receivership will have on the outstanding claims of B-N relating to its abortive takeover of Romaero, which was cancelled by the Romanian Government, when B-N failed to complete the deal. The UK producer argued that they had not been given full transparency when doing due diligence on the acquisition and wished to see a lower cash price reflecting the company's condition. According to the receivers they are currently in discussions with a number of potential buyers of the company and its assets, but they declined to give any further view on the status of the Romaero arbitration currently being heard in Paris. Recent reports have suggested that the Romania State Property Agency was attempting to gain access to funds lodged by B-N at the time of the original deal and frozen by the UK courts when it collapsed. Associated articles: www.concise.org 29th November 1999:Romanian privatisation restart

Article ID: 1566