Vulpescu was tasked with drafting and presenting a viable reorganization strategy for Hidroelectrica by August 31.
In a surprising move mid-June, Romania’s largest energy producer Hidrolectrica filed for insolvency, citing financial difficulties due to a prolonged draught and defective management. The company said it would undergo reorganization in the following 18 months.
Hidrolectrica’s reorganization strategy aims to improve cash flows by raising revenues and cost-cutting measures, the energy producer said.
The energy company posted a net profit of 6.4 million lei (EUR1.4 million) in 2011, from over RON292 million a year earlier. The company had short-term debt worth RON2.6 billion at the end of 2011, up from RON1.7 billion in the previous year, while long-term debt was RON1.5 billion.
The Economy Ministry owns 80.05% in Hidroelectrica, while investment fund Fondul Proprietatea (FP.RO) has 19.94% of its shares. (EUR1=RON4.4508)