Romania: CET Govora entered insolvency

25. May 2016. / SEE Energy News

The company has outstanding debt of some 200 million euros to Energy Compex (EC) Oltenia for the coal delivered until July 2014. On the other hand, the company has receivables from Oltchim petrochemical complex in the amount of 30.5 million euros.

According to a decision made by the Ramnicu Valcea Court, the largest electricity producer in Valcea County CET Govora has entered insolvency. The company will be managed by judicial administrator Euro Insol, which is already administering electricity producer Hidroelectrica.

CET Govora is the second largest company in Valcea County. According to the press release by the company’s management, the thermal power plants has been confronted with the lack of coal in stock, blockades in coal transportation and the interruption of delivery of spare parts, materials and services from over 200 suppliers.

The company has outstanding debt of some 200 million euros to Energy Compex (EC) Oltenia for the coal delivered until July 2014. On the other hand, the company has receivables from Oltchim petrochemical complex in the amount of 30.5 million euros.

In early 2015, after a year and a half of negotiations, EC Oltenia has transferred the operation of Berbesti and Alunu coalmines to CET Govora , thus extinguishing the debt accumulated in the past ten year for delivered but unpaid coal. In 2014, these two mines have produced some 1.41 million tons of coal. Electricity and thermal energy producer (CET) Govora is supplying district heating to several cities in South-central Romania, transmits Serbia-energy.eu

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