Euro Insol Reinstated As Hidroelectrica’s Legal Administrator

02.26.2014 By Florentina Dragu

Insolvency company Euro Insol has been reinstated as judicial administrator of Romanian state-run hydropower producer Hidroelectrica after the latter was court-ordered into re-entering reorganization procedure, a minority shareholder in the company said Wednesday.

Investment fund Fondul Proprietatea (FP.RO), which owns roughly 20% in Hidroelectrica, said the power company was placed back under reorganization procedure after the Bucharest Appellate Court cancelled a court decision allowing Hidroelectrica to complete a 12-month insolvency process.

“As a result, the case will be sent back to the syndic judge for a retrial,” Fondul Proprietatea said.

Additionally, the appellate court has cancelled and sent back to the syndic judge for retrial two other cases, the fund said.

The first case was filed by Hidroelectrica against a decision through which the syndic judge admitted the claim of Termoelectrica regarding a receivable, while the second one was filed by Elsid Titu against a decision of the syndic judge through which he did not admit a claim worth around 13 million lei (EUR2.87 million) following the application of a force majeure clause in 2011.

Hidrolectrica, Romania’s largest electricity producer, runs units with a total installed capacity of 6,400 megawatts and covers around 30% of the local power consumption

The government plans to sell 15% in the hydropower company and considers a dual listing, in Bucharest and in London.