22 C
May 17, 2021

Hunedoara Energy Company files for insolvency

Hunedoara Energy Company filed an application to Hunedoara-based Court on Tuesday for opening the procedure for entering insolvency, with the case to be judged at the 2nd Civil Section – Administrative and Fiscal Contentious Issues.

“A date for the court proceedings has not yet been set, since the application was filed only today (Tuesday – editor’s note). The case will be judged at the 2nd Civil Section – Administrative and Fiscal Contentious Issues”, Hunedoara Court spokesperson Ildiko Glaman told AGERPRES.

According to the economic information unveiled by Energy Minister Victor Grigorescu in the coal-mining town of Petrosani on Monday, Hunedoara power company has 1.2 billion lei in debts and has deductions on all its accounts.

The company employs some 6,400 staff at the coal mines of Lupeni, Lonea, Livezeni and Vulcan, as well as at the heating plants of Mintia and Paroseni.

EnergyMin: Hunedoara Energy Company bankruptcy not an option

The bankruptcy of Hunedoara Energy Company is not an option for the Energy Ministry, since it would bring about “huge” social issues and could affect the national energy security, Minister Victor Grigorescu said in Petrosani, near Deva on Monday.

“There is one thing that I want to say loud and clear, and it is an assertion we make on behalf of the Energy Ministry: bankruptcy is not an option for us. This is because such a fact would bring about huge social issues and would question the energy security. Ultimately, it would prove our inability to manage a complex situation, to defend our economic and social interests. I think we owe it to exert efforts so as to prevent the disappearance of Hunedoara Energy Company”, the minister told a news conference.

Grigorescu stressed that jobs and the national energy security represent priorities of the ministry and underlined the need to make correct decisions with respect to the power maker.

“The company, the situation it is now in, is at an extremely difficult point and any delay or hesitation or inability to make the correct steps may lead to an extremely complicated situation, short of a disaster. Jobs are our priority, and everything that they mean”, he added.

The minister explained Hunedoara has 1.2 billion lei in debts and has deductions on all its accounts, which creates immediate pressure on the payment capability. According to the energy head, among the causes having led to the dire financial situation at the power company are politicization, corruption and squander, which he said must be “decisively stopped”.

The energy minister visited the mining Jiu Valley on Monday, where he had meetings with the Hunedoara Energy Company managers and unions and got down into the pit of Lupeni Coal Mine.

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