Bogdan Tudorache

Under the judicial administration of CITR, Hidroserv SA – the Hydropower Services Company submitted today the reorganization plan meant to facilitate the recovery of the company.

With the achievement of new efficiency standards in the company and the implementation of the reorganization plan, Hidroserv aims for a courageous increase of almost 15% in turnover by 2022, and the encouraging forecast is maintained and compared to the operating result, with an estimated increase 25% of EBITDA over the next two years.

With a turnover of 124 million lei and a net positive result at the end of 2019, together with the operating profit registered in the first quarter of this year, Hidroserv takes an important step for reintegration into the economic circuit and sustainable recovery of the company’s solvency. The company aims to generate a turnover of 184 million lei in 2020, as a result of financial, operational restructuring and investments in equipment provided by the reorganization plan, but also by carrying out maintenance works on hydropower objectives, as part of the new framework agreement concluded for the next four years with Hidroelectrica, the main beneficiary of Hidroserv.

“I am glad to see that Hidroserv, a company of strategic importance in the National Energy System, is ready for reorganization. The two successes already achieved, the achievement of the operational profit and the completion in mutually advantageous conditions of the negotiation with Hidroelectrica, make me confident in the chances of its recovery. Saving the value of this company means re-entering the economy of a key player in the energy market, for which our multidisciplinary team of specialists will continue to use all the expertise gained in CITR’s 20 years of experience,” says Adrian Lotrean, CITR Senior Partner.

Among the priorities of the reorganization strategy developed by CITR, which continues the measures applied in Hidroserv, are the obtaining of financial resources from the collection of trade receivables, the tranching of receivables, as well as the financial and operational restructuring of the company.

The next steps after submitting the Reorganization Plan to the Bucharest Tribunal are to convene the Creditors’ Meeting to approve the reorganization plan, so that at the next trial on June 24, Hidroserv can receive confirmation of the reorganization plan and begin implementing the plan.