Hidroelectrica will not come out of insolvency this year due to ongoing processes
May 28 2015
Due to the nineteen ongoing processes,
the exit from insolvency for Hidroelectrica is not possible says
Remus Borza, the Director General of the energy producer. "The
processes progressing very slowly. It will not come out of insolvency
for sure this year. Hopefully next year," said Borza.
The
company entered insolvency for a second time in early 2014.
Hidroelectrica declared insolvency for the first time in 2012 due to
severe drought and contracts that forced the energy producer to sell
electricity below market prices, registering huge losses.
Hidroelectrica recorded a gross profit of 1.2 billion
lei in 2014 and produced 18.2 terawatt of electricity. The Romanian government agreed with the IMF and the
European Commission to list on the stock exchange a minority stake in
Hidroelectrica but the process can only start in three to four months
after the exit from insolvency says Borza.
Fondul Proprietatea, the
only minority shareholder of Hidroelectrica, evaluates the 20% stake
it holds at 494 million euro, resulting a value of the company of
about 2.5 billion euros.
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