The lengthy judicial proceedings hamper Hidroelectrica to exit from insolvency.
“The court challenges are advancing very slowly. The company will definitely not exit insolvency this year. We hope next year!”, Remus Borza (photo) the representative of Euro Insol, company’s judicial administrator said Reuters on Tuesday, quoted by Agerpres.
Romanian state-owned power producer was first forced into insolvency in 2012 by a severe drought, and a string of contracts under which it sold the bulk of its output below market prices, losing USD 1.4 billion over six years.
The company exited insolvency in 2013, after undergoing restructuring and cancelling the deals. But contract holders challenged their cancellation and a court ruling tipped the firm back into insolvency in early 2014, where it remains pending final court verdicts.
Borza had initially expected Hidroelectrica to come out of insolvency during this year and then to be listed on the stock exchange in the first half of 2016.
“It will be by far the largest listing. The state will get at least EUR 500 million for the 15 percent stake of Hidroelectrica,” Borza said at that time. As an argument in this context, the representative of Euro Insol pointed out that the Romanian company ended 2014 with an EBITDA of 65 percent of turnover.