Romanian state-controlled hydropower producer Hidroelectrica is expected to get out of insolvency next week on June 8, when the next retrial term of the case is scheduled at the Bucharest Court, company’s trustee Remus Borza suggested in Thursday in a press conference.
“In 2012 I took over the most indebted company in Romania, with EUR 1.2 billion of debts. Today Hidroelectrica does not owe anyone a penny.
In the past three years, Hidroelectrica concluded the financial years with a combined gross profit of EUR 500 million. An insolvent company succeeded to give dividends to shareholders, a unique case in the world,” Borza stated. He said that what was done during Hidroelectrica’s insolvency, it’s ‘a real economic miracle’.
According to him, Hidroelectrica has allocated EUR 1.2 billion for investments during 2015-2020 period, although the company passed through a difficult period of insolvency.
He added that there gave been allocated enough money for maintenance, giving up only the contracts with companies that disadvantaged the company.
On the other hand, Hidroelectrica’s listing would be the largest in CEE this year, the investment fund Fondul Proprietatea stated, which is its sole minority shareholder.
It would be the first IPO of a state-owned firm in Romania since the sale of power utility Electrica in 2014. Borza said Hidroelectrica had already appointed listing and legal advisers. He reiterated that it could list a 15 percent stake, both on the Bucharest and London stock exchanges.
Hidroelectrica has been run by a court-appointed manager after it became insolvent for the second time in early 2014. It first became insolvent in 2012 after losing USD 1.4 billion over six years from contracts under which it sold the bulk of its output below market prices.