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Hunedoara Energy gets the first tranche of 37.8 million state aid

According to an Emergency Ordinance on granting Hunedoara Energy Complex (CEH) a state aid totalling RON 167 million (EUR 37.8 million), the first tranche has been paid to the state-owned electricity and heat producer, a statement by the Ministry of Energy, SMEs and Business Environment shows.

2015-07-22 14:55:50

In June, The government announced a loan of 167 million lei for Hunedoara energy complex, as state aid for salvation, conditioned by guarantees and the obligation of the leadership to draw up a plan of voluntary liquidation if the loan is not given back or the unit does not present a restructuring plan.

The loan will be given in two stages during a period of six months, to cover the necessary of liquidities, on the basis of an analysis made by Eximbank and the value of the guarantees must cover at least 120% of the loan. The National Agency for Fiscal Administration will start seizure on real estate goods, according to a decision adopted by the government in the last session.

The first stage of the loan will be 98.4 million lei and the second will be 68.5 million lei, the second stage being conditioned by the reimbursement of another loan the government offered the unit, in May,for three months, worth 40 million lei.

CE Hunedoara will give back the loan out of own sources, but it will benefit from a prologation of the period for the loan in case they present a restructuring programme approved by the European Commission as well.

If in six months no restructuring plan is presented or no proof of reimbursing the money is given, the company will be obliged to present a plan for voluntary liquidation.Another condition for giving the loan is that the money will not be allocated for the coal sector,the mining activity of the company being legally separated from the other activities. As a result of the losses of 2013,2014, the CE Hunedoara has serious liquidation problems. Two months ago, over 200 employees of the Complex protested against the fact the state aid was not offered, among the complaints were included the creation of a energy strategy which could include Mintia and Paroseni thermal power stations.

The European Commission approved temporarily an aid worth 37.7 million euro for the salvation of the Ce Hunedoara, owned by the ministry of energy. The CE Hunedoara with the headquarters in Petrosani, Hunedoara county, owns a share on the market of approximately 5 per cent of the electricity production in Romania and has approximately 6,500 employees.

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