The Dan Steel Group Beclean wire factory, one of the most important companies in the metallurgical industry in Romania, in bankruptcy proceedings since the beginning of the year, will be put up for auction with a starting price of EUR 25.9 million plus VAT. CITR Cluj Branch together with Prime Insolv Practice, as judicial liquidators, are organizing the auction on April 28th, 2023.
“We wish to attract potential investors who would revive this factory with a history spanning over 30 years, which has been one of the main employers in Beclean and at the same time an important company in Romania's metallurgical industry. The property has all the necessary utilities and access to the on-site railway, also being fit for various manufacturing activities. Besides that, surplus plots can be used for the development of photovoltaic panels. The valorisation of the mill and, implicitly, the restart of the production activity, will have a positive impact on the area, providing new jobs”, said Mariana Boiciuc, Senior Partner, CITR Cluj Branch.
The factory that is being put up for sale is located at 3, Valea Viilor St., in the locality of Beclean, Bistrița-Năsăud County, and the asset consists of land in excess of 40 hectares, buildings with a total usable area of 75,460 square meters, and related equipment. The property is delimited by the Valea Viilor Street and the railroad to the north, by the Valea Viilor Street to the west, and by undeveloped plots to the south and east.
The auction will take place on April 28th, 2023, 12:00, at the offices of Prime Insolv Practice, located in Bucharest, Bulevardul Aviatorilor nr. 52, parter, ap. 1-2. Additional data and information about the auction can be found at http://sales.citr.ro/.
Established in 1991, the Dan Steel Group Beclean SA company's main object of activity was the manufacture of basic iron and steel and of ferro-alloys (nails, galvanized wire, braided wire, welded mesh, panels, etc.), meant both for the domestic market, and for the foreign one (Hungary, Poland, Serbia, The Czech Republic, Slovakia). The company's products were mainly destined for the construction and agricultural domains, as well as for other branches of industry manufacturing consumer goods. The turnover decline started in 2017, when a decrease in the business volume led to a reduction of the working capital, as well as to a significant debt ratio increase. Last but not least, the measures imposed in 2018 by the European Commission on the import of certain categories of steel industry products forced Dan Steel Group Beclean SA to purchase its raw material from within the EU, under much more onerous contractual conditions for itself, and with advance payment, which created additional pressure on the company's financial situation. Problems also continued over the last years, when the manufacturing industry was severely affected against the backdrop of increased prices for energy and fuels, of hindered supply chains, of reduced orders and of increased financing costs. The company has accumulated debts worth over EUR 35 million.
About the industry
The manufacturing industry, alongside trade and constructions, were the most affected fields in 2022, and companies in these fields represent over 60 % of the total number of companies that entered insolvency procedures in 2022, according to CITR studies.
Since the summer of 2022, companies can receive new restructuring mechanisms, which can help support their recovery since the very first signs of distress: the restructuration agreement and the arrangement with creditors. Within these procedures, companies are free to negotiate with creditors and to suspend foreclosure, and, at the same time, the creditors of such companies can obtain a higher degree of debt recovery.
CITR has been the insolvency and restructuration market leader in Romania ever since 2008. With an experience of over 22 years on the insolvency market and over 1100 projects managed over time, CITR is managing assets worth EUR 1 billion on a yearly basis, and is distributing over EUR 100 million to creditors each year, in its mission to save the value of Romanian companies with an impact.
CITR is a company of Impetum Group, the first Romanian group dedicated to maximizing business value in each stage in a company's life, with the aim of creating a positive impact on the economy.