Romanian businessman Dorinel Umbrarescu is reportedly facing legal complications in his plans to take over the ailing steel mill Otelu Rosu operated by Laminorul Danube Metallurgical Enterprise (LDME), currently under insolvency and idle for years, Profit.ro announced.
Umbrarescu, currently active in the road construction industry, announced it is taking over the insolvent steel mill Otelu Rosu for EUR 12 million and is planning to resume operations this autumn, according to local media in Caras Severin County (southwestern Romania), where the plant is located.
Specifically, Umbrarescu’s family (his son Alexandru) is taking over the EUR 12 million claims held by the creditors against LDME.
However, Moldovan businessman Alexandru Rotaru – an indirect shareholder and special administrator of LDME at the same time, holds a leasing contract over LDME’s assets through another company (MF Industry & Asset Management).
As a special administrator, Rotaru challenged in court the transfer of the claims (against LDME) from the tax authority ANAF to Dorinel Umbrarescu, and as an indirect owner of MF Industry & Asset Management, he challenged the termination of the lease contract regarding the steel mill’s assets.
iulian@romania-insider.com
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