26.3 C
May 20, 2022

Hidroelectrica, close to coming out of insolvency in June

Court dismisses ‘wise guys’ claims.

Hidroelectrica could come out of insolvency by the end of the month, as the Bucharest Tribunal dismissed, on Wednesday, the last claim made by former company partner Alpiq RomIndustries, the court-appointed administrator says.
‘The Bucharest Tribunal yesterday (Wednesday – a/n) dismissed the claim made by the last energy trader, Alpiq RomIndustries, Against the measure taken by the court-appointed administrator, Euro Insol, of not introducing to the table of debt an amount of RON 527 M demanded by Alpiq RomIndustries as damages for the rescission by the judicial administrator of its sale and purchase agreement nr. 39 of 29.11.2004 with Hidroelectrica. On April 10, 2013, the Bucharest Tribunal also denied another Alpiq RomIndustries claim asking for RON 719 M’, reads a press release of the court-appointed administrator for Hidroelectrica.
All 75 claims have now been heard in Court, therefore the administrator, Euro Insol, may no register with the Bucharest Tribunal the final table with the debts owned by Hidroelectrica and, afterwards, the reorganisation plan.
‘The term of June 26, 2013 for the end of insolvency for Hidroelectrica is still reachable’, the release notes.
The value of the debts claimed by the 381 Hidroelectrica creditors is RON 5.4 bn, RON 3.5 bn having been acknowledged by the administrator. RON 1.1 bn was not recognised and RON 800 M was admitted, subject to the presentation of additional supporting documents. A total of 75 creditors whose receivable debts had not been recognised went to Court to dispute the preliminary table drawn up by the court-appointed administrator. The value of the disputed debt is RON 1.9 bn.
The main cause of Hidroelectrica’s insolvency are the bilateral agreements with electricity traders that caused the company a loss of over EUR 1.1 bn. From January 1, 2006 to May 31, 2012, the agreement concluded with Alpiq RomIndustries caused Hidroelectrica a loss of RON 422 and the agreement with Alpiq RomEnergie, executed from January 1, 2008 to May 31, 2012 – RON 427 M, the company notes.
Also on Wednesday, Bucharest Tribunal dismissed the claim made by RomIndustries against the rescission by the judicial administrator, Euro Insol, of the sale and purchase agreement for electricity of 29.11.2004 signed with Hidroelectrica.
Hidroelectrica filed for insolvency in June last year.

Salary fund down EUR 6 M after restructuring
According to a press release, Hidroelectrica has been restructured and will keep seven out of 13 branches. Another consequence of the process is the loss of about 300 jobs and an annual saving with salaries of approximately EUR 6 M. The strategy for the administrative and territorial restructuring of Hidroelectrica, proposed by the judicial administrator, EuroInsol, was approved by the Extraordinary Shareholders’ Assembly on May 29. Oradea, Sibiu, Slatina, Targu Jiu, Buzau, Caransebes branches have been turned into plants and integrated within the branches of Cluj, Sebes, Ramnicu Valcea, Portile de Fier, Curtea de Arges and Hateg. The seventh branch is Bistrita, that takes over from SH Buzau the Calimanesti and Movileni stations. ‘The merger of branches will make the energy producer more competitive by reducing operating costs and will be a guarantee for an enhanced profitability of the company while the price of electricity drops on the market amidst a higher production of electricity in Romania and decreasing consumption’, a company release reads.

Related posts

Mitsubishi Corporation concerned with economic and sustainable environmental value

Broad money raised 6.1 pc, non-government loans declined by 0.9 pc

Nine O' Clock

Over 2,050 foreign-owned companies registered in four months of 2014

Nine O' Clock