9.5 C
December 9, 2022

Hidroelectrica, UCM Resita and Hidroelectrica Serv to consolidate into holding

Power producer Hidroelectrica, equipment supplier UCM Resita and maintenance company Hidroelectrica Serv could merge into an integrated holding structure, according to the authorities’ plan, UCM Resita legal administrator and former chairman of Hidroelectrica board Remus Borza told AGERPRES. UCM Resita, insolvent since December 2011, has debts of RON 859 million, 60 per cent of which to the state budget. “UCM Resita is insolvent. Hidroelectrica needs technological upgrade and UCM is the most qualified to provide hydro-energy equipment. If UCM goes bankrupt, Hidroelectrica will face some serious issues,” said Borza. Besides, he deems necessary that authorities should abrogate letter k of Art 95 in the Law of Insolvency, which states that debts owed to the public budget cannot be converted into shares, and stressed that the measure is crucial for some other companies in the same situation.

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