Bucharest - Romania has halted the sale of state-owned chemical producer Oltchim, claiming the investor, media mogul Dan Diaconescu, did not have the necessary documents, according to local media reports.
It is believed that Diaconescu was unable to prove he had the money to rescue the heavily indebted polymer and chemical company. Romania Insider claimed that Diaconescu brought cash bags to the Romanian government to prove he had the money to pay for Oltchim employees' salaries, but that he was expected to stump up the agreed Euro 45 million for the sale and not money to cover salaries.
The Romanian government is to restart privatisation in 2013. Meanwhile, the company will restart production, according to Romania Insider.
Reuters reported that Diaconescu said he has supplied the relevant documents as per the agreement."