“It’s in everyone’s interest to complete the procedure by December 31, 2012,” said Remus Borza, general manager of Euro Insol. “It will be difficult though; not impossible, but very difficult.”
Initially, Borza estimated the insolvency process would be completed in the second half of 2013.
Hidrolectrica, Romania’s largest power producer, has filed for insolvency in June this year and is currently undergoing reorganization. The company cited several reasons for starting the insolvency procedure, including a prolonged drought, damaging executive decisions and unprofitable delivery contracts with over a dozen companies.
Once Hidroelectrica’s reorganization is complete, the company should make EUR80 million to EUR100 million in annual profits, Borza said.
Borza criticized several companies whose energy contracts were terminated after Hidroelectrica filed for insolvency, accusing them of pushing for a full-fledged bankruptcy of the power producer.
“Without Hidroelectrica, Romania would be literally left in the dark,” he added.
Two companies, Alpiq RomIndustries and Alpiq RomEnergie, and trade union Hidrosind have filed an appeal against Hidrolectrica’s decision to enter insolvency. A rulling in the matter is expected later today.