The strategy of approving state-owned companies’ plans after “street pressure” does not cease to fail. Thus, following the mini-protest of a few employees of Smart, Transelectrica’s maintenance subsidiary, the shareholders (the Romanian state and Transelectrica) had to cede and approve funds worth 24 million lei for the unit that lacks finance.

“The Board of Directors of the Subsidiary of the Society for Maintenance of the Electricity Transport Network ‘Smart’- SA brought to the attention of the shareholders of the company (CNTEE Transelectrica SA and the Romanian State through the Ministry of Economy) the significant deterioration in the last financial period of the company, due to the lack of financial resources for payment of due legal and contractual obligations, which led to the accumulation of a total amount of payment obligations with a maturity exceeding 60 days in the amount of 4.19 million lei”, reads the release of Transelectrica, submitted to the Bucharest Stock Exchange.

“Under these circumstances, the Management Board of Smart SA submitted for approval to the shareholders an Economic and Financial Restructuring Program of Smart SA, which contains as a central element the need to capitalize Smart in the amount of 24 million lei. Considering the role of Smart SA as a maintenance subsidiary of the electric transport network and the special importance of network maintenance activities in relation to the safety of the National Electricity System, the executive management of CNTEE Transelectrica SA analyzed as a matter of urgency the situation of the company and ordered the initiation of the legal steps necessary for the adoption of the Smart Solution measures in order not to jeopardize the continuity of the maintenance activities and to combat the insolvency of Smart SA.

“Based on art. 121 of the Companies Law no. 31/1990, the shareholders of the subsidiary Smart SA, CNTEE Transelectrica SA and the Romanian State through the Ministry of Economy met on 28 March 2019 at the General Shareholders’ Meeting, in which the Economic and Financial Restructuring Program was unanimously approved of the Smart SA activity,” the press release also said.

It remains to be seen what Smart will do with the money.

Autor: Bogdan Tudorache

Active in the economic and business press for the past 26 years, Bogdan graduated Law and then attended intensive courses in Economics and Business English. He went up to the position of editor-in-chief since 2006 and has provided management and editorial policy for numerous economic publications dedicated especially to the community of foreign investors in Romania. From 2003 to 2013 he was active mainly in the financial-banking sector. He started freelancing for Energynomics in 2013, notable for his advanced knowledge of markets, business communities and a mature editorial style, both in Romanian and English.