Euro Insol reinstated as Hidroelectrica’s legal administrator

Insolvency company Euro Insol has been reinstated as judicial administrator of Romanian state-run hydropower producer Hidroelectrica after the latter was court-ordered into re-entering reorganization procedure, a minority shareholder in the company said Wednesday.

Fondul Proprietatea, which owns roughly 20% in Hidroelectrica, said the power company was placed back under reorganization procedure after the Bucharest Appellate Court cancelled a court decision allowing Hidroelectrica to complete a 12-month insolvency process.

“As a result, the case will be sent back to the syndicate judge for a retrial,” Fondul Proprietatea said.

Hidroelectrica going back into insolvency sent shock-waves throughout the business world and the Ministry of Economy is making efforts to get the company back on track as soon as possible. The ministry will focus solely on investments that will magnify Hidroelectrica’s energy production capabilities.

“We will get Hidroelectrica out of insolvency as soon as possible and also implement our restructuring plans. (…) We’re going to eliminate projects and investments that have nothing to do with energy production”, Gabriel Dumitrascu explained, head of the privatization at the Department of Energy.

Furthermore, Dumitrascu says that the ministry’s representatives will meet with Raiffeisen Capital&Investment and Morgan Stanley (the team selected to amange Hidroelectrica’s IPO) on Thursday in order to extend the State’s contract with them until Hidroelectrica will come out of insolvency.

“It’s very hard to estimate how long it will take. Let’s wait a few more days, nobody has enough information to make a conclusion”, Dumitrascu said.

The Ministry of Economy could utilize an extraordinary attack, after talks with several lawyers, to get the hydroelectricity producer out of insolvency.