Hidroconstructia, the largest local constructor of hydropower projects, went insolvent on its own initiative on January 19, 2022, for debts of over RON500 million, with the intention of reorganising the company.
“The company’s recovery strategy is aimed at ensuring the continuation of the business in order to be able to complete in due time projects of national importance that are already underway, such as the construction of water-canal infrastructure throughout the country as well as works for our beneficiary Hidroelectrica”, said Vlad Nastase, CEO of Concilium Consulting.
Hidroconstructia shareholders decided to appoint Concilium Consulting as special administrator in order to manage its assets by proposing and monitoring the implementation of a reorganisation plan. As a matter of fact, the company’s streamlining strategy also targeted a change in the management team, which also includes, starting now, the company managed by Vlad Nastase.
“We are determined to ensure the success of the reorganisation of this company that is so important for the domestic industry, and therefore we have chosen the most suitable partners (…) Electromontaj has the financial strength and the operational experience to support this recovery process. Therefore, Hidroconstrucția has the resources to go forward,” stated Ionut Tanasoaica, CEO of Electromontaj, the new shareholder of Hidroconstructia S.A..
Electromontaj S.A., leader in the energy constructions market in Romania, has recently taken over Hidroconstructia and the transaction was approved by the Competition Council in November 2022. The new investor has consolidated a number of smaller shareholders to own approximately 63% of the company, allowing it to implement restructuring measures at decision-making level. The investment of Electromontaj Group consists of the transfer of best practices and expertise as well as financial support to improve the cash flow of Hidroconstrucția SA and its branch offices, according to company officials.
Hidroconstructia S.A. was established in 1950 as the sole constructor of hydropower projects. The company also carries out projects in Algeria, Iran, Moldova, Germany, Belgium, Iraq, Bulgaria and Jordan.