Termoelectrica will donate part of its assets to help form the new entity, as per a government agreement with the International Monetary Fund.
Termoelectrica is controlled by the state, through the Economy Ministry. The company employs over 12,000 staff and runs seven units, namely Electrocentrale Mintia, Electrocentrale Bucuresti, Electrocentrale Galați, Paroseni, Doicesti, Borzesti and Braila.
According to a government memorandum to a EUR3.6 billion loan agreement signed with the IMF, Paroseni and Mintia companies have already been removed from Termoelectrica’s portfolio. The two units will be included in a future energy holding, called Hunedoara Energy Complex.
Termoelectrica was also stripped of its subsidiaries in Bucharest, Braila and Galati, which are now managed by the Economy Ministry and whose assets will be used to create Electrocentrale Group.
The remaining assets in Termoelectrica’s portfolio will enter liquidation or reorganization, according to the memorandum.