Tec Miaco, one of the top players in the poultry industry, has been forced to extend its restructuring programme after failing to find an investor to inject new funds and rescue the company from receivership. The company went into receivership early last year following a creditors' request that the company declare its insolvency due to debts of 15-20 million euros.
"We haven't managed to seal any deal yet, but we are still in talks with investment funds associated with strategic investors. Last year, we cut our production capacity to 75% and we want to continue this year at the same level," said Marius Iliev, chairman and owner of 45% in the Tec Miaco business.
He maintains that, despite the measures taken, the company has retained its number two spot on the market after Agricola International Bacau.
"In principle, we need a capital infusion of 10 million euros in order to get out of this situation in the short term. In the long term, we will be able to solve these problems on our own," explained Iliev.
The company is continually on the look out for investors, following the sale at the beginning of this year of the 45% stake in the business owned by two investment funds - Romanian Enterprise Fund (RAEF) and Romanian Investment Fund (RIF) - to a domestic investor, whose name Iliev was unwilling to disclose.
Given the difficult situation, Tec Miaco last year closed its slaughterhouse in Mangalia, transferring its entire production to its slaughterhouse in Crevedia, and ceased distribution to some areas of the country located far away from its production facilities. At the same time, the company also closed its under-performing poultry farms. As a result of these measures, the production capacity of the group shrank from 2,000 tonnes to 1,500 tonnes per month.
Iliev says he has as yet not sold nor has any intention of selling any closed assets, which he "keeps with a view to their drawing in capital".
Tec Miaco last year produced around 18,000 tonnes of chicken under the "Ferma Natural", "Avicola Crevedia" and "Galo" brands. Tec Miaco owns Avicola Crevedia, Avicola Constanta and Combipra Ploiesti, a grain silo with a capacity of 5,000 tonnes per month.
In 2003, the company had a turnover of 38 million euros. Iliev declined to give details as to turnover figures for 2004.
He says the poultry market is going to see further growth this year. "The growth tendency will be maintained this year and new investors will surely appear to cover the market share currently filled by imports, which have come to dominate a third of the market," said Iliev. stelian.negrea@zf.ro
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