Bucharest's supplier of heated water RADET goes into insolvency

Bucharest’s supplier of heated water RADET goes into insolvency

Newsroom 05/10/2016 | 16:52

RADET, the state-owned supplier of district heating and heated water for Bucharest, has officially entered into insolvency, following a ruling of the judges announced on Wednesday.

The company has voluntarily opted for this procedure and now the creditors have 10 days to oppose this move.

RADET has to pay debts worth over RON 3.9 billion to Electrocentrale Bucuresti (ELCEN), the biggest thermal energy producer in Romania.

The mayor of Bucharest, Gabriela Firea, said recently that the insolvency of RADET was the safest move to secure the supply of heated water to the city.

In a separate case, the board of ELECEN has also decided to send the company into insolvency, as it can’t repay its own debts because RADET hasn’t paid the bills. The debts of ELCEN amount to roughly RON 1.6 billion.

Judges will decide on October 6 if they accept the insolvency request of ELCEN.

ENGIE Romania, the French utility group that owns Distrigaz Sud Retele, the distributor of gas to ELCEN, said in a statement at the end of September that ELCEN’s decision to file for insolvency will have a negative impact on its operations.

The company warned that its investments program for the Bucharest gas network might suffer because of ELCEN’s move, which has to repay debts of RON 155 million.

Both RADET and ELCEN announced at the end of September that they were filing for insolvency.