Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
In August 2005, half of the 210 employees of Abrom company in Bârlad (Nord-Est region, Vaslui county) were set to be made redundant, at the proposal of the Authority for State Assets Recovery (Autoritatea pentru Valorificarea Activelor Statului, AVAS).
In October 2005, the government issued a decision which raised the number of redundant jobs to 170.
Abrom is the second major producer of abrasive components in Romania. In 2002, the company was privatised, with 77% of its shares bought by employees. As Abrom subsequently found itself on the verge of bankruptcy, it reverted to the state portfolio and according to the law is currently being reorganised.
The management of the company maintains that AVAS had in view the company's recovery. The general manager of Abrom declared 'We are attempting an economic recovery which is difficult to achieve, if we consider the large number of debts towards the state and several providers of raw materials. Despite the redundancies we are trying to double production and to contract new partners to extend the commodity market'.
Eurofound (2005), Abrom, Internal restructuring in Romania, factsheet number 62200, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/62200.