Hunedoara County Court upheld, Thursday, the insolvency request of Hunedoara Energy Complex (CEH), filed by the company itself. Although many expected the trustee to become Euro Insol, the same as in Hidroelectrica case, the court decided to appoint a company from Craiova, GMC SPRL, established only six months ago.

This insolvency company is unknown even to the Ministry of Energy. The ruling may be appealed within seven days of its publication in the Insolvency Proceedings Bulletin (BPI), which will happen, say sources from CEH. In general, concerning the designation of a receiver, the judge takes first into consideration the proposal made by the largest creditor.

GMC SPRL was proposed by UPSROM, a creditor for CEH, and the local media write that the two companies are linked by shareholding. The insolvency of CEH was decided by the Board of the company on 28 December 2015 as a solution to avoid bankruptcy.

From January to November 2015, CEH realized losses of 320 million lei its total liabilities exceede 1.2 billion lei. These catastrophic results derive from a low trading price on OPCOM energy exchange, and from its huge production cost of 356 lei/MWh.

“In the first 11 months of 2015 we made a loss of about 320 million lei. Last year, the price on the day ahead market (reference regarding energy transactions – n.red.) was 160 lei/MWh. Even if we get free coal delivered to our gates, we still have a cost of 214-215 lei/MWh. Now we have 356 lei/MWh. Even if we all come to work penniless and with free coal, we still be making a loss. But there are moments when, because of our 3-5% production, the light stays on. We had periods, even last year, when the low water levels have affected the hydropower production and the operation o Cernavodă reactors, but the coal carried on. This is why we must take the cost price”, says Viorel Stancu, general director at CEH.