Romanian state-owned power producer Termoelectrica will go out of business once its viable assets are stripped and sold off, but the company’s debts to the state budget cannot be paid, announced Adriean Videanu, the economy minister.
“After we outsource those assets with potential, Termoelectrica will go bankrupt. (…) We will try to make them independent entities and all other assets will enter bankruptcy proceedings. It is impossible to pay Termoelectrica’s debts,” said Videanu. The Termoelectrica assets considered “viable” include the Paroseni, Galati, Braila, Borzesti and ELCEN Bucharest plants.
The decision was included in a letter of intent to the International Monetary Fund (IMF). According to the document the liquidation will be completed by July 2011. Termoelectrica is involved, along with other European power companies, in the construction of several production units, the future of which will be decided in September.Moreover, the minister also announced that state-owned gas producer Romgaz could be listed on the Stock Exchange early next year. “Romgaz will be listed. We will start the procedures so as to be ready to list the company in nine months,” said Videanu. According to him, a share package of 10-15 percent of Romgaz could be sold on the Stock Exchange. The Economy Ministry also plans to list share packages of two other important state-controlled energy companies which will be formed this summer: Electra and Hidroenergetica.