Galvex sold to Silver Point Capital
One more nightmare for foreign-direct investment in Estonia?
According to the decision of a US bankruptcy court, the steel galvanizing plant Galvex will be acquired by the investment company Silver Point Capital. Silver Point Capital will cover the debt claims against Galvex.
The Galvex plant began operation in 2003 and was then the biggest foreign investment in Estonia, costing 217 million euros. Galvex ran into difficulties a year ago when it was unable to meet its debt obligations. Galvex’s debts reached 150 million U.S. dollars.
Adding intrigue, the Estonian press has speculated that Silver Point is connected to the Russian firm Severstal.