Romania: By the end of 2020 ELCEN and Termoenergetica will leave insolvency

, SEE Energy News

Bucharest-based electricity and heat provider ELCEN and the successor of Bucharest’s bankrupt municipal district heating provider RADET – Termoenergetica will leave insolvency by the end of the year, said Romanian Minister of Public Finance Florin Citu.

Minister Citu said that, toghether with the Mayor of Bucharest, the Government found the procedural and financial solution for these two companies to get out of insolvency.

ELCEN’s insolvency proceedings were opened in October 2016, at the company’s request. At that time, the total receivables amounted to over 450 million euros, of which receivables of the Ministry of Finance and the National Agency for Fiscal Administration were in the amount of about 220 million euros. The other significant creditors were state-owned companies and credit institutions.

ELCEN’s reorganization plan was confirmed by the court in October 2018, but it was subsequently amended because the planned funding sources did not materialize. The amended reorganization plan was confirmed by the court in July 2020, with a deadline in October 2022.

Minister Citu also said that during the insolvency ELCEN did not meet the necessary conditions to obtain financing from non-reimbursable European funds. Under these conditions, the necessary investments have not been made to maintain energy production capacity in a long-term, sustainable way.