The Bucharest Court has postponed for Tuesday, June 21, its ruling on Hidroelectrica’s discharge from insolvency. “Although the decision has been postponed several times, judges have approved all the documents filed so far, and the court will rule next Tuesday on the company’s discharge from insolvency,” sources told Agerpres.
Hidroelectrica has been insolvent since February 2014, for the second time. The company had previously been insolvent from June 2012 to June 2013.
The most important measure taken during the insolvency period was cancelling the 11 bilateral contracts concluded directly with several energy traders and end consumers, the so-called “slick guys”: Energy Holding, Alpiq Romindustries, Alpiq Romenergie, Energy Financing Team, Alro Slatina, ArcelorMittal Galati, Electromagnetica, Electrocarbon, Euro-Pec, Elsid, Luxten.
The long-term bilateral contracts caused Hidroelectrica over EUR 1.1 bln in damages, the trustee in bankruptcy’s report on the causes of the insolvency shows, particularly “because of the contracts’ very long period, surpassing 10 years, and of the vague and general character of the contract terms, which do not allow Hidroelectrica to cancel the contracts in the hypothesis an agreement is not reached on an energy price correlated with the evolution of the price of energy on the competitive market.”