Bucharest Court rejected as unfounded all opposition by energy traders and trade unions against the opening of insolvency proceedings at Hidroelectrica, according to economica.net.

“Opposition filled to the Court under no. 26502/3/2012 was initially dismissed as devoid of interest by sentence no. 6218 issued on 19.06.2013. This sentence was quashed by Bucharest Court of Appeal, which by decision no. 459 of 25.02.2014 upheld the appeal made by unions and traders and sent the case back to the Court of Bucharest.

The Bucharest Court rejected as unfounded oppositions formulated by Alpiq Romindustries, Alpiq Romenergie, Alpiq AG and the National Union Petrom Energy against the judgment of opening Hidroelectrica insolvency proceedings dated 20.06.2012.

However, the court ordered to Alpiq Alpiq RomEnergie and Alpiq RomIndustries to pay 29,469.05 lei to Hidroelectrica and 29,516.71 lei to Fondul Proprietatea, which intervened in the proceedings in favor of Hidroelectrica”, reads a statement Hidroelectrica.

Hydropower became insolvent on 20.06.2012 due to the accumulation of debts due within a period of up to one year of over 2.6 billion lei and older than one year of 1.5 billion lei.

On the opening of proceedings, Hidroelectrica was part in 11 bilateral contracts with energy traders, whereby the energy was sold below production cost and at half the market price. Hidroelectrica registered losses both in historical investment and refurbishment contracts of some production units, and half of the annual production was sold in the regulated market at a third of the cost of production.