Insolvency exit for Hidroelectrica postponed for June 21

Bucharest Court of Justice postponed for June 21, the exit from the insolvency process of energy company Hidroelectrica, according to sources from energy sector quoted by the national newswire Agerpres.

2016-06-16 15:35:20

The company was declared insolvent in February 2014, for the second time, the first time being between June 2012-June 2013. The major measure during the insolvency process referred to the dissolution of 11 bilateral contracts signed by the company with several energy traders and end consumers: Energy Holding, Alpiq Romindustries, Alpiq Romenergie, Energy Financing Team, Alro Slatina, ArcelorMittal Galați, Electromagnetica, Electrocarbon, Euro-Pec, Elsid, Luxten. These contracts resulted in losses of over 1.1 billion Euro, according to data pf judicial administrator. Further, the Romanian Ministry of Energy, the major shareholder of Hidroelectrica, plans to list a package of 15 per cent shares. Fondul Proprietatea, the sole minority shareholder of the company evaluates its participation of 20 per cent stock at 594 million Euro, indicating a total value of 2.97 billion Euro for the entire company. The listing plans might be the first IPO of a state company from Romania, since the listing of Electrica in 2014.

In February this year, Hidroelectrica hired the consultancy company Deloitte to manage the financial audit services between December 2015 – December 31, 2017, including the services related to the stock exchange listing. Last year, Hidroelectrica achieved a gross profit of 1.1 billion lei, 3.5 times fold compared to the result from 2010.