“The emergency decree lowers arrears in the economy. CNH had debts to the tax authority, CE Hunedoara had debts to CNH, therefore these debts will be written off, cleaning up CNH. There was no talk of numbers, just the principle of the operation. The tax authority is expected to weigh in,” said government spokesman Corneliu Calota.
The draft decree stated CE Hunedoara will take over a debt of RON10.84 million (EUR2.5 million) the coal mining company CNH owes the tax authority, relieving the coal company of its tax debt. The move also extinguishes part of CE Hunedoara’s debt to CNH.
CNH, under liquidation, asked for the energy holding’s insolvency last year over a receivable of RON70.7 million (EUR15.8 million).
In November, the government approved a plan whereby CE Hunedoara was no longer required to pay its receivable if it took over the debt.
During liquidation, CNH amassed debts of over RON4.7 billion to the consolidated state budget.
CE Hunedoara’s loss widened six-fold to 167.47 million lei (EUR37.5 million) in the first half of 2014, from RON27.2 million in the year-earlier period, and its turnover dropped 10% , to RON346.47 million (EUR77.6 million).
The company was set up in 2012 through the merger between state-owned thermal power producers Deva and Paroseni. It has an installed capacity of 1,435 megawatts and covers approximately 5% of the country’s entire energy production. It has 6,619 employees, of which 1,740 in its energy division and 4,720 in its mining division.