Romania: EC approves 37MEUR financial aid to Hunedoara Energy Complex, SEE Energy News
European Commission approves financial rescue aid for Hunedoara Energy Complex, considering that it complies with EU rules on state aid and, in addition, Romania has committed to submit a restructuring plan designed to ensure the future viability of EC Hunedoara, where the undertaking will not be able to repay the rescue aid after six months.
The European Commission has concluded that the temporary rescue aid amounting to EUR 37.7 million to be granted by the Romanian authorities Hunedoara Energy Complex, manufacturer of electric and thermal energy state owned Romania is in accordance with EU rules on state aid. The Commission found, in particular, that the aid was limited to the amount necessary to enable the EC Hunedoara continue to carry out its operating activities power plants in the next six months.At the end of this period, the company will reimburse Romania aid or notify a restructuring plan that will establish measures to ensure long-term sustainability of the enterprise, “stated a press release from the European Commission.
Following losses in 2013 and 2014, CE Hunedoara facing serious liquidity problems. EC Hunedoara Romania will provide short-term loans to enable the company to pay its creditors and to maintain its operating activities until it is able to present a restructuring plan. “The Commission considered that the measure is in line with the 2014 Guidelines on rescuing and restructuring firms in difficulty. In particular, the aid amount is limited to what is necessary for the retention of the company over the next six months. In addition, Romania has committed to submit a restructuring plan designed to ensure the future viability of EC Hunedoara, where the company will not be able to repay the rescue aid after six months.