Bucharest Court decides Hidroelectrica’s exit from insolvency

The Bucharest Court on Tuesday ruled that energy producer Hidroelectrica, one of the most profitable state-owned companies, exited from insolvency, a judicial reorganization procedure in which it has been for the second time in the past two years.

The decision has been delayed twice so far by judges at the Bucharest Court, on 6 and 15 june.

Hidroelectrica has been in insolvency since Juen 2012, but in two phases, as during June 2013 – February 2014 it exited from the judicial procedure.

During insolvency, the company was managed by insolvency administrator Remus Borza, who eliminated the damaging contracts with the “wise guys” in the energy sector and cut the staff of the company. He stated that Court decision on company’s exit from insolvency “is not final, but is enforceable”.

Following recovery measures, Hidroelectrica cut debts and became one of the most profitable state-owned companies.

Hidroelectrica posted in the first five months of this year a turnover of RON 1.29bn, down 18% from the similar period of last year, while the gross profit fell 12%, to RON 560mln, as a result of lower production and lower market prices.

However, Remus Borza estimates that Hidroelectrica will register in 2016 a record profit of RON 1.3bn, compared to RON 899.4mln in 2015. Moreover, Hidroelectrica had on 31 May liquid assets of RON 1.6bn.

In May, Borza said Hidroelectrica could be listed on the stock exchange in November, if it were to exit from insolvency in June.