The General Council of Bucharest (CGMB) approved a draft decision for the transfer of the assets and liabilities of RADET and ELCEN to Energetica Municipal Company SA. The draft was adopted with 32 votes in favor and 7 abstentions.
The RADET Judicial Administrator requested by an address dated May 11, 2018 the principle approval of the transfer of RADET to Bucharest Municipal Energy Company. Also, on May 14, 2018 ELCEN requested the principle approval of the transfer of the ELCEN business to the Bucharest Municipal Energy Company.
Thus, the reorganization plan provides for the transfer of all activities carried out by RADET, all assets, including software, patents, inventories, databases, technical projects, contracts with suppliers and customers, including employees. Receivables and debits during the procedure will also be transmitted together with current receipts and payments, excluding current budget receivables.
The minutes of the Creditor Committees RADET and ELCEN show that ANAF and the Ministry of Finance, as creditors, agree with the transfer. On the other hand, lending companies, whether state-owned or private, are reluctant, according to HotNews.
At the request of energynomics.ro, the special administrator of ELCEN Claudiu Creţu stated that during the insolvency procedure an evaluation of ELCEN’s assets was carried out and this showed that “the payment of debts will be made in a very large percentage, if not 100 %, anyway, close to this level. ”
According to the ELCEN assets assessment Report, prepared by Veridio SRL on 21 March 2018, ELCEN’s claim on RADET was estimated at 1 billion lei, compared to a nominal value ranging from 3.56 billion lei to 3.7 billion of lei, reads in a document quoted by HotNews.
Bucharest City Hall says the RADET reorganization plan needs to be modified to “secure a positive vote from the ELCEN majority lender,” according to news.ro.
The municipality justifies the urgency of the project through the advanced state of the insolvency procedure. “The urgency lies in the advanced stage of the insolvency procedure, where the creditors’ vote on the submitted reorganization plan was suspended by ELCEN at the request of its creditor committee, meaning that, in view of the general considerations set out, the two entities must present plans reorganization compatible and coordinated in the two RADET-ELCEN insolvency proceedings”, the decision states.
The initial plan of the municipality was to transform RADET into a joint-stock company under the name of RADET SA, to buy ELCEN’s share package from the Ministry of Energy and the merger by absorption of ELCEN by RADET. Claudiu Crețu explained for energynomics.ro that “the option which provided for the purchase from the Ministry of Energy by the Mayoralty of the actions of the ELCEN thermal energy producer and subsequently its takeover by absorption by RADET, requires more time than we have available, both in terms of investment needs in the heating system, and from the perspective of the absorption of European funds, an option accessible only to companies that are not insolvent”.