“It’s impossible to see Hidroelectrica listed this year,” said Greg Konieczny, manager of Fondul Proprietatea.
Hidrolectrica, Romania’s largest electricity producer, has 80.05% of its shares in the hands of the Energy Department, while Fondul Proprietatea holds a 19.94% stake.
The power company was placed under insolvency in late February, after the Bucharest Appellate Court cancelled a previous court decision allowing the Hidroelectrica to complete a 12-month reorganization process started in June 2012.
Following the decision, insolvency company Euro Insol was reinstated as Hidroelectrica’s judicial administrator.
“Overall, this could be a positive thing for Hidroelectrica’s financial situation and operations on the short term,” Konieczny said. He mentioned Euro Insol has done a “very good job” during its previous mandate as Hidroelectrica’s administrator.
Hidroelectrica runs units with a total installed capacity of 6,400 megawatts and covers around 30% of Romania’s power consumption.
The Romanian authorities plan to sell 15% in the hydropower company and consider a dual listing, in Bucharest and in London.
The initial public offering was initially slated to take place by the end of June this year, but the operation could be postponed following Hidroelectrica’s insolvency.