Hunedoara Energy Complex, a state-owned company with 4,000 employees, has asked for insolvency on Monday. Despite the state aids the complex had enjoyed over the time, Hunedoara Energy Complex has posted huge losses of over RON 270 million in the first half of 2019 ad debts of over RON 1.6 billion.
The request for insolvency has been filed to the Hunedoara Tribunal on Monday.
It is not the first such request of the complex, with Hunedoara Court approving the insolvency of Hunedoara Energy Complex (CEH) in January 2016 after a company’s request in 2015. Eventually, the state saved the company, by offering it an aid, which yet proved to be illegal following an inquiry by the European Commission.
At the proposal of the Ministry of Energy, the Romanian Government adopted in April 2018 a Draft Emergency Ordinance, stating that the power plants of the Hunedoara Energy Complex (CEH) will have to provide 400 MW-system services in the next two years (by 2020).
But the aid came in less than a month since the European Commission has opened an in-depth investigation to assess whether various public support measures from Romania in favour of energy producer in Hunedoara are in line with EU rules on state aid to companies in difficulty.