The reorganization plan proposed by CITR for the insolvent company Electrocentrale Constanța SA was confirmed by the syndic judge on September 27, having been previously approved by the company’s creditors in a percentage of over 98%. This commitment to implement the measures is an essential step for achieving the objective of the restructuring process of Electrocentrale Constanța, namely ensuring long-term economic viability and maintaining the provision of hot water and heat services for the population of the Municipality of Constanța.
“CITR proposed an innovative recovery solution, which has not been implemented until now. The strategy proposed by the CITR team through this plan paves the way for Constanța City Hall to access the European funds necessary to make investments in the thermal energy distribution system at the local level, their age and inefficiency being the main cause of the losses of the thermal agent and the insolvency of the Electrocentrale company. Moreover, the strategy creates the conditions for the development and for the production of electricity, at a time when Romania is in great need of energy. The project is ongoing with the permanent support of the Ministry of Energy,” said Florin Constantin, CITR Partner, CET Constanța Case Manager.
In order to ensure the continuity of the thermal energy production activity, CITR proposed the integration of the CET Palas thermal power plant into the Centralized Thermal Energy Supply System (SACET Constanța) and the implementation of the transfer procedure of the functional industrial asset CET Palas into the ownership of the Romanian state, in order to be able to achieve its subsequent transfer to the administration of UAT Constanța through Constanța City Hall.
The next step in the procedure is the implementation of the transfer mechanism of the functional industrial asset CET Palas into the public ownership of the state according to the provisions of GEO no. 60/2019, in close collaboration with the Romanian authorities. At the same time, CITR will work on the capitalization of assets not used in the current activity of thermal energy production, as well as on the recovery of claims registered against third parties. The development of the plan will take place over a period of three years, and the implementation of the transfer mechanism of CET Palas to the state is estimated at a period of at least eight months.
Electrocentrale Constanța SA entered insolvency on 24.05.2019 due to major losses in the thermal energy supply chain. The main creditors of CET Constanța are: S.N.G.N. Romgaz, S.N.T.G.N. Transgaz, RAJA Constanța, Tinmar Energy, Electrica Furnizare, Electrocentrale Bucharest and ANAF.
