”If the government changes the privatization methodology, the sale of a 15% stake by the Romanian state will bring nearly EUR1 billion to the Finance Ministry, an amount that will allow the government to meet the budget deficit target of 3% in 2017,“ said Borza, coordinator of the reorganization process and former coordinating practitioner of Euro Insol.
Hidroelectrica registered a profit of EUR1 billion between 2013 and 2016 and an annual EBITDA (earnings before interest, taxes, depreciation, and amortization) of EUR500 million, according to a document released by Euro Insol, the company’s judicial administrator. Following the reorganization, Hidroelectrica turned into the most profitable company. When the insolvency procedure started (June 20, 2012), Hidroelectrica had debts of over EUR1.1 billion and loss of EUR170 million. Throughout the insolvency procedure, the company’s market value doubled from EUR2 billion in 2012 to EUR4 billion in 2016.
Hidroelectrica exited insolvency in June 2016 after a four-year insolvency process and plans to list a 15% stake on the stock exchange.