Romania: Alpiq appeal against Hidroelectrica cancellation of contract dismissed in court25. February 2016. / SEE Energy News
Court dismisses Alpiq appeal on Hidroelectrica insolvency proceedings and termination of bilateral contracts.
Hidroelectrica announced that after remaining court hearing on 11 February, Court of Appeal issued the civil decision no. 99 of 18 February on the filed complaint by energy traders Alpiq Romindustries against the judgment on opening the insolvency proceedings of Hidroelectrica, reads the press release of Hidroelectrica. Complaint of Alpiq and its related companies were dismissed.
Hidroelecrica reminds that the complaint registered at the Bucharest Tribunal under no.26502/3/2012 was initially dismissed as irrelevant to the sentence no. 6218 issued on 19.06.2013. That judgment was quashed by the Court of Appeal that the decision no. 459 of 02.25.2014 upheld the union and traders and referred the case back to the Court of Bucharest.
Bucharest Court by civil sentence in 1440 of 11 February 2015 rejected as unfounded complaint by Alpiq Romindustries, Alpiq Romenergie, Alpiq AG and National Union Petrom Energy against the judgment for opening of insolvency proceedings ofHidroelectrica dated 20.06.2012. However, the Court ordered adversaries and Alpiq Alpiq RomIndustries RomEnergie to cover costs amounting to 29469.05 lei to Hidroelectrica and 29516.71 lei to Property Fund, which intervened in the case in favor of Hidroelectrica.
Appeals of Alpiq Alpiq Romenergie Romindustries were rejected by civil decision 99 issued on Thursday, February 18, 2016. All complaints and appeals are now definitively resolved within a record of 1339 days, despite the fact that insolvency law provides that all cases have to be resolved within a 5 days stress the Hidroelectrica press release.
Hidroelectrica entered insolvency on 20.06.2012 due to the accumulation of debts due within a period of one year and more than 2.6 billion lei.
At the opening of the procedure, Hidroelectrica had some 11 bilateral contracts with energy traders, whereby energy was sold below the production costs and at half the market price. Hidroelectrica contracts covered half of its annual production, it was sold in the regulated market at one third the cost of production.
When applying for the opening of insolvency proceedings, Hidroelectrica was in “extremely difficult financial situation”, recording cumulative losses of over 170 million euro in the financial years 2011 to 2012 and a negative net cash of 782 million lei.
According to the Hidroelectrica press release, insolvency proceedings terminated the traders bilateral contracts and they have renegotiated 487 contracts, following these steps Hidroelectrica reported 2013 profit of 902 million lei in 2014 a record profit of 1.157 billion lei and in 2015 a profit of 1.104 billion lei.
“Court of Appeal decision definitively confirmed that a declaration of insolvency of Hidroelectrica was a correct decision, which validates and strengthens the implicit steps of EuroInsol the administrator , specially including the termination of the 11 bilateral agreements that generated financial losses the company of more than 1 billion euros,” the release reads, transmits Serbia-energy.eu
Download as PDF :