Another state aid for Hunedoara Energy Complex. The company must submit a voluntary liquidation plan

The Romanian Government is granting again an individual state aid of RON 167 million to Hunedoara Energy Complex (CEH) for its rescuing.

The loan will be granted in two tranches for a period of six months to meet its liquidity needs, based on economic and financial analysis carried out by Eximbank. The amount of guarantees should cover at least 120 percent of the loan. In this respect, the National Agency of Fiscal Administration (ANAF) is going to put in place seizure of immovable on property insurers, according to a decision taken by the Government at its last meeting.

The first tranche of the loan sums up to RON 98.4 million, while the second tranche will reach to EUR 68.5 million. But this second installment is conditional on the repayment of another loan granted in May by the Government at the energy complex, for three months, amounting to RON 40 million.

CEH will repay the loan from its own resources, but will benefit from an extension of the loan period if will present a restructuring plan and endorsed it by the European Commission.

If within six months it’s not submitted a restructuring plan or is not indicated a proof of loan repayment, the company will be required to submit a voluntary liquidation plan. Another condition of the loan is that the money will not be earmarked for the coal sector and the mining activity of the company will be legally separate from other activities.