Romania's largest energy company Hidroelectrica to keep number of employees, assets during reorganization

The reorganization of state-owned energy company Hidroelectrica, which recently became insolvent, will ensure the same number of employees and the same volume of assets, according to the recent agreement between the Economy Ministry – the main shareholder in the company and the judiciary administrator.

The court ok-ed the insolvency request filed by Hidroelectrica last week, as the company saw increasing debt and lowering turnover. The insolvency does not target a bankruptcy, said Remus Vulpescu, president of the Administration Council for Hidroelectrica. He sees the insolvency as a result of a 'management disaster' and of the drought in 2011. The reorganization will last 16 to 18 months and will not include asset sales or shutting down hydro power plants. The company ended 2010 with a turnover of EUR 778 million and a net profit of EUR 70 million. With over 5,000 employees, Hidroelectrica lowered its net profit by 18 times in 2011. The company's short term loans went up by EUR 212 million in 2011 to some EUR 614 million, of which EUR 260 million are bank loans. editor@romania-insider.com