ARMO about to be taken back under state ownership

12/02/2016 15:15

The Albanian Government might take back another strategic company that
was given in concession. Even this time, its privatization resulted in a
huge financial failure. Same as CEZ, the Energy Corporation, now ARMO,
the oil company, is in a very deep financial crisis.

Although it enjoys the status of a strategic sector, ARMO is in the bring of collapse. The company has interrupted its activity and has not paid its employees for the past six months. It has also turned into a hot potato for massive debts.

The company has more than 470 million USD of debts, 220 million of which are owed to the Tax Office while the rest to third parties, especially banks. The bigger exposure to banks makes the situation even more delicate.

A few weeks earlier PM Rama ordered the establishing of a special working group, with representatives from some ministries and the State Advocacy. Within two months, the group will sent to the government a document with propositions for resolving the crisis. But Top Channel has learned that the variants they have taken in consideration are three: “taking the company back under state ownership, liquidating it or selling it”.

85% of ARMO are owned by an Azerbaijani group, called Heni Assets, and 15% by the Albanian government. The Azerbaijani group bought the company from Rezart Taci, but left after getting to know its real financial situation.

Sources said for Top Channel that the woking group has tried to contact the Azerbaijani company, but without success. If the owners will not answer, the government will address to the International Court for an obligatory appeal to continue the negotiations for finding a solution.

After owning it, the state would bring the company back to work. In case of liquidating it, the company would be brought to bankruptcy and some obligations would be paid after the sale. The best option would be selling it to an investor, but It is highly improbable, due to the high debts.

Top Channel