Romania’s biggest energy company Hidroelectrica exits insolvency, following court decision

The Bucharest Court recently decided that Romania’s largest energy producer Hidroelectrica can exit insolvency. The court established that Hidroelectrica has fulfilled its payment obligations as defined in the reorganization plan approved by its creditors on June 18, 2013, reads a statement of the company. “Exiting insolvency is a confirmation of this company’s potential, which can be maximized with an efficient management, in relation to the market. We will continue the restructuring process of the company, taking into account all the key elements: the work force, necessary operational report, production capacity, the potential for development on the local and regional markets, the capacity to engage in the development of strategic projects for the Romanian energy sector,” said the Minister Delegate for Energy, Constantin Niţă. He also added that, over the medium term, “we will also start procedures to list a minority package”. Hidroelectrica entered the insolvency process on June 20, 2012, and Euro INSOL was appointed the judicial administrator. Romania pledged during negotiations with the International Monetary Fund (IMF) to sell 10 percent of Hidroelectrica after it exits insolvency. The Romanian Minister Delegate for Energy said earlier this month that even if Hidroelectrica exits the insolvency procedures, the company will remain with debts, which will be paid in installments. In the first quarter of 2013, Hidroelectrica reported a profit of EUR 32.8 million and a turnover of around EUR 150 million. On March 31, 2013, Hidroelectrica had some 4,900 employees, down from over 5,200 recorded when the company entered the insolvency process. Irina Popescu, irina.popescu@romania-insider.com