Bucharest Court postpones to June 21 Hidroelectrica’s exit from insolvency

The Bucharest Court has postponed the exit from insolvency procedures of Hidroelectrica to June 21. The decision was postponed numerous times already, since the energy supplier entered insolvency in February 2014 for the second time.

Previously, the company was placed under judicial reorganization procedures between June 2012 – June 2013.

The court was supposed to rule on the matter on June 8 and later on June 15. “Although the decision was postponed several times, judges approved all documents submitted until now, and on Tuesday the court will rule on the company’s exit from insolvency,” sources from the energy sector told Agerpres.

The most important measure taken during insolvency was the termination of 11 bilateral contracts with energy traders and end users, namely Energy Holding, Alpiq Romindustries, Alpiq Romenergie, Energy Financing Team, Alro Slatina, ArcelorMittal Galati, Electromagnetica, Electrocarbon, Euro-Pec, Elsid, Luxten. These bilateral contracts caused Hidroelectrica damages of EUR 1.1 billion, a report by the trustee of Hidroelectrica stated, “due to the length of contracts, of over 10 years and of the vagueness and relativity of contractual provisions that do not allow Hidroelectrica to end contracts in the event of failure to reach an agreement on the energy price correlated with the evolution of the price on the private market.”

After exiting insolvency, the Ministry of Energy, majority shareholder of Hidroelectrica, is considering the listing of a 15 percent package.

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Recently Metrorex, the company running Bucharest’s metro network, assigned a twelve months contract for supplying energy worth RON 46.8 million (EUR 10.3 million) to insolvent Hidroelectrica, according to records posted in the Electronic System for Public Acquisitions (SEAP). As per the new contract, between July 2016 and June 2017, Hidroelectrica will supply Metrorex with 170,000 Mwh.

Georgeta Gheorghe