Energy Minister Grigorescu: Hunedoara Energy Company situation disastrous, even bankruptcy could be reached

The financial situation of Hunedoara Energy Company is disastrous and the company could even reach bankruptcy, which would bring about huge social problems in the coal mining area of the Jiu Valley and could jeopardise the safety of the national energy system, Energy Minister Victor Grigorescu said on his Facebook account on Monday.

“I am paying a working visit to Hunedoara Energy Complex this morning. /…/ The financial situation of the company is disastrous and the main fear is that it could even reach bankruptcy. Such a situation is utterly unacceptable, because we would be faced with a huge social problem in the Jiu Valley and a problem of safety of the national energy system”, Grigorescu said.

He underscored that he will meet the company management, the mining trade unions and local authorities during the visit.

“I wait from the management of Hunedoara Energy Complex to understand that the fate of tens of thousands of the Jiu Valley families depends on its actions. We can afford no mistake and no hesitation and it is my duty to warn all those involved that the seriousness of the situation can bring about major repercussions for all the involved players”, the minister added.

The Energy Ministry had announced in October that it would send the European Commission a notification by means of which the rescue aid for Hunedoara Energy Company, which employs more than 6,400 workers is to be turned into a restructuring aid. Such aid could thus be used for the conversion of the debts and for funding the measures in the restructuring plan of Hunedoara. At the same time, according to the restructuring plan, there will be gradual cost cuts, a measure also correlated with the presentation of guarantees as regards the viability and profitability of the activity for a 3-year period. The plan is chiefly aimed at reorganising the company and at boosting the economic efficiency of all the sectors of its activity.

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