Romania’s Hidroelectrica repays another creditor, makes cash reserves

Romanian state-owned electricity producer Hidroelectrica, currently insolvent, closed a EUR 30 million credit line from RBS Bank at the end of July, the company announced. This is the fifth large loan that the company closed in the last five months. The company has repaid EUR 240 million to Alpha Bank, Banca Transilvania, EBRD and Citibank since March 31. Hidroelectrica will also repay a EUR 60 million loan that reaches maturity in November this year. Currently, the company’s loans amount to EUR 204 million, compared to EUR 841 million in June 2012, when Hidroelectrica first entered insolvency. The company managed to repay its debt thanks to higher cash inflows in the first six months of this year, which allowed it even to set aside some EUR 79 million in bank deposits. Hidroelectrica made a gross profit of EUR 114 million in the first half of this year. The company is fighting in court to get out of the insolvency procedure and hopes to lauch an initial public offering (IPO) next year on the Bucharest Stock Exchange (BVB). Read also: Insolvent Hidroelectrica posts new record profit Romania’s Hidroelectrica wants to sell 27 micro hydro power plants in September bids Ovidiu Agliceru appointed new GM of Romania’s energy producer Hidroelectrica Andrei Chirileasa, andrei@romania-insider.com