Hidroelectrica, the country’s largest power producer, was court-ordered into a second insolvency process in February this year, less than eight months after completing a one-year reorganization process.
According to a company’s statement, the increase of revenue by over RON700 million on the year in 2013, to RON3.1 billion, triggered the repayment of several debts and the termination of some of the company’s credit lines.
Between March 2013 and April 2014, Hidroelectrica terminated a credit line worth RON80 million granted by Alpha Bank in 2009, a RON120 million short-term credit line from Banca Transilvania, and an ING credit line worth RON31 million.
In April, Hidroelectrica also repaid a EUR110 million investment loan granted by the European Bank for Reconstruction and Development to rehabilitate Stejarul Bicaz hydropower plant.
In the upcoming period, the company plans to pay back an investment loan worth EUR75 million (Citibank International), a EUR60 million investment loan (ING Bank NV Dublin), and terminate a credit line of EUR29 million (RBS Bank Romania).
Hidroelectrica is 80.05%-owned by the state, while investment fund Fondul Proprietatea (FP.RO) holds a 19.95% stake.
In 2013, the company reported a turnover of nearly EUR700 million, up 28% on the year, and a net profit of EUR162 million, from EUR114 million loss a year earlier.