Hidrolectrica, the country’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.
Euro Insol, the court-appointed administrator of the company, renegotiated the unprofitable bilateral contacts signed with Alro Slatina, Elsid, Electrocarbon and Electromagnetica, and cancelled the energy deals with Alpiq RomEnergie, Alpiq RomIndustries, Energy Holding, EFT AG, EFT Romania and Euro P.E.C.
Romania’s government plans to launch an initial public offering for a 10% stake in Hidrolectrica within four months after the company exits insolvency.