Romania's oldest oil refinery declared bankrupt

The decision on the bankruptcy of the Steaua Română (Romanian Star) oil refinery was made on April 18 by a panel of judges in Bucharest.  This means that the organization should be excluded from the state register of debtors, and all financial claims against the plant will be cancelled.  The representatives of the organization will have a chance to appeal the decision of judges within two weeks.

The verdict on bankruptcy and liquidation of SC Rafinăria Steaua Română SA was adopted in February last year. The current decision of the court, according to the local publications, is the final point in the bankruptcy process. The court approved the liquidator's report and closed the insolvency proceedings, although the decision to delete the company from the Commercial Register is not yet final.

The “Romanian Star” plant was established 127 years ago and, as reported on the company's official website (steauaromana.ro), was the largest refinery in Europe.

The plant, built in 1895-1897, was partially destroyed during two world wars, but was restored in 1947. In the 1960s-1980s, the refinery was considered one of the largest European oil refineries.

By the beginning of the revolutionary events in 1989, the plant was in a state of decline. In 1992, the management of the enterprise developed ambitious plans to increase the recovery of crude oil, reduce energy consumption and the cost of processing raw materials, as well as the negative impact of the enterprise on the environment.

In 1994 the plant was privatized.

The privatization gave the refinery workers hope that the new shareholders would invest financial resources in the operation of the enterprise and revive the former glory of the plant. Gradually, however, the only company in Romania that produced paraffin entered the crisis. The first major blocking of assets took place in 2003, then, the same situation took place in 2008. And in 2013, the company declared bankruptcy with the subsequent sale of the assets.