Râmnicu Vâlcea Court ruled, on Monday, that CET Govora plant, the second largest company in the county, shall enter into insolvency. Euro Insol Company has been appointed trustee. In a press release it is stated that, after the insolvency of Oltchim, initiated in January 30, 2013, CET Govora lost 137 million lei, namely the current debt of Oltchim to CET Govora.

“The economic and financial situation has worsened in the following years, so in mid-October 2015, upon taking office by the current Supervisory Board and by the current Board, there has been observed an increase of the historic debt and an accumulation of losses brought by the current activity. Thus, the new leadership has faced from the start no coal stocks up, a total blocking of coal transport, a stop regarding the supplies of spare parts, materials and services from over 200 suppliers and an extremely cautious attitude on the part of banks”, reads the release.

The financial blockage was highlighted in April, when CFR Marfă executed a debt of over 20 million lei against CET Govora.

Govora, a company subordinated to the county government, with a total of 1,600 employees, produces coal-based power, industrial steam for companies in the industrial park Râureni and heat and hot water in a centralized system for the people in Râmnicu Vâlcea.

Through Euro Insol, Remus Borza already manages the insolvency of Hidroelectrica and that of Prospecțiuni.