Bucharest Court admitted the request of Electrocentrale Bucharest SA (ELCEN) to entry into insolvency and KPMG will be special administrator. The decision comes a day after RADET, which is ELCEN’s bigger debtor, entered a similar procedure, this time being managed by Rominsolv.
ELCEN‘s Board of Directors decided on September 22 to forward the application for the insolvency of the company to the Bucharest Court, its decision being determined by its financial position and debts registered to suppliers and distributors of fuel, services and products, a situation generated due to the debts owed by RADET Bucharest. Total debt of ELCEN reached about 1.8 billion lei, while the RADET account payables to ELCEN reached a total of about 3.7 billion lei.
Some industry players, such as the former GDF Suez, ENGIE, argued earlier that the insolvency of the energy producer Electrocentrale Bucuresti S.A. (ELCEN) was made without consulting all the interested parties (stakeholders).
“ENGIE Romania, energy group that owns Distrigaz Sud Retele, service provider of distribution of natural gas to ELCEN, was surprised and deeply concerned, regarding the decision of the Board of ELCEN to initiate the insolvency proceedings of the company” reads a press release of the company.
“This decision, taken without consulting all the parties involved will have negative consequences on the financial situation of Distrigaz Sud Retele, jeopardizing the investments necessary for the safely operation of the distribution network of natural gas, both at Bucharest level and of the entire area operated by the company”.
