Romanian Plane Mkr Avioane Craiova Asks For RON14M Bailout

Romanian airplane maker Avioane Craiova (AVIO.RO) requested the country's privatization authority AVAS a bailout of 14 million lei (EUR1-RON4.2810) to avoid bankruptcy, trade union leader Victor Peta said Tuesday.

Peta said he held talks on Tuesday with Economy Minister Adriean Videanu and the Minister of Transportation Radu Berceanu on the company's situation, and that he requested their support to salvage the plant.

"We've requested a bailout AVAS is able to give to companies with difficulties, particularly since we undergo privatization proceedings. True, the amount we've requested, of RON14 million, might be considered big, but we certainly need it to survive over the next six months," Peta said.

"The money is to ensure the company's activity, to pay suppliers and salaries, so that we can avoid cases when any service or material supplier can ask for insolvency procedure," he added.

The Romanian government recently decided to transfer several companies from AVAS' portfolio to the ministry of economy, including Avioane Craiova.

The transfer, however, is yet to be completed and the two public institutions decline responsibility.

"Unfortunately, things are moving slowly, because the transfer from AVAS to the (economy) ministry has not been made yet. AVAS tells us they can no longer help us regarding the requested aid, as the company is not in their portfolio any more. The ministry has no money to grant such aid. We just might be left to starve like the child with two mothers," Peta said.

Mediafax