Romania’s largest energy producer Hidroelectrica to soon exit insolvency, one year after start of reorganization process

Hidroelectrica SA, Romania's state-owned hydro-power producer and largest energy producer in the country will exit the insolvency procedure on July 1 this year, according to the Minister Delegate for Energy, Constantin Niţă. “We will promote professional management as it was done for all the state - owned companies, then we will list 10 percent on the stock exchange. We will set a list of priorities because there are a lot of investments that were started. We have to go back to what we’ve always said, namely to efficiency,” said the Romanian Minister, quoted by local news agency Mediafax. Constantin Niţă also added that even if Hidroelectrica exits the insolvency procedures, the company will remain with debts, which will be paid in stages. Hidroelectrica entered the insolvency process on June 20, 2012, in order to be re-organized. Euro INSOL was appointed the judicial administrator. In the first quarter of 2013, the company 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. Hidroelectrica announced earlier in May that it will sell, through public auction, 88 of its small hydro-power plants. The sale was approved on March 13, 2013 during the company’s General Meeting of Shareholders and it will be done in stages, starting this June, “through transparent and competitive methods, securely meeting the Romanian law,” read a statement from the company. The 88 units have a combined installed capacity of 58 MW. Hidroelectrica operates hydropower plants with a total capacity of over 6,000 MW. The entire list of the small hydropower plants to be auctioned, here. Irina Popescu, irina.popescu@romania-insider.com