Romanian PM: Hidroelectrica To Resume Business As Usual Next Week

Romania”s largest power producer Hidroelectrica will most likely complete its insolvency process by the end of next week, following the approval of the company”s reorganization program by its debtors, Prime Minister Victor Ponta said Wednesday.

„Hidroelectrica”s debtors approved the company”s reorganization plan last evening, which probably means that the company will finally return to the market next week, after having struggled for one year to eliminate bad business,” Ponta told a government meeting.

He said the government will start the proceedings to list a minority stake in Hidroelectrica on the Bucharest stock exchange as soon as the company is declared solvent again.

Hidrolectrica has filed for insolvency at the end of June 2012 and is currently undergoing reorganization. The company cited several reasons for starting the insolvency procedure, including a prolonged drought and unprofitable electricity contracts with over a dozen companies.

The company”s reorganization program must be validated by a Bucharest court for Hidroelectrica to complete its bankruptcy process and resume business as usual.

Hidroelectrica reported a pretax profit of 380 million lei (EUR84.8 million) in the first five months of 2013, according to data from the company”s legal administrator Euro Insol.

The company forecasts a full-year pretax profit of RON434 million.

Hidroelectrica has debts worth some RON3.6 billion, plus another RON700 million in conditional receivables. (EUR1=RON4.4801)