Romania: ELCEN to merge with Termoenergetica, SEE Energy News
In late 2019, newly established Termoeneregtica became the operator of district heating system in Romania’s capital Bucharest, instead of RADET who went into bankruptcy. At the moment, ELCEN is under the control of the Ministry of Energy, while Termoenergetica is controlled by the Bucharest City Hall. In early 2021, Bucharest Mayor Nicusor Dans said that City Hall is planning to buy ELCEN.
Special administrator of Bucharest-based electricity and heat producer ELCEN Claudiu Cretu said that the company will exit insolvency by the end of the year and, if there is interest from the Bucharest City Hall, it could merge with Termoenergetica.
Cretu said that Termoenergetica currently has more than 70 million euros of current debt to ELCEN, whose objective is to collect these due debts as soon as possible. Asked if the company would sue for Termoenergetica’s insolvency, he said it is looking into all legal options, but suing for insolvency is the last resort, because ELCEN would have nothing to gain from the move. Its goal is to collect all the bills on time, in order to have the necessary capital for repairs and investments.
He added that the merger process could take up to six months. As long as there is will and funding from Bucharest City Hall, by the end of the year Bucharest could have an integrated system out of insolvency, which can take European funds for production, transport and distribution, Cretu concluded.
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