ELCEN creditors have adopted on Monday the plan to reorganize the company, giving a green light to the restructuring of the Bucharest term. According to the most recent action plan, Energetica SA, the company established by the City Hall, would take over ELCEN through business transfer and not by buying titles from shareholders – the Ministry of Energy (97.5% of the capital) and Romgaz (2.5% ) – as initially discussed. In an interview for energynomics.ro, Claudiu Crețu, Special Administrator of ELCEN, announced in May, that this plan would allow for a large portion of the debts to be paid to the creditors. The transfer price would be 891.3 million lei worth, the official estimated to have been obtained from a forced sale of ELCEN’s assets in the bankruptcy case of the company, writes economica.net.

“The Creditors Assembly of ELCEN Bucharest (ELCEN) approved the reorganization plan of Bucharest’s largest thermal energy producer, vital for the future of the entire centralized heating system in Bucharest. […] With the decisive votes of the representatives of the creditors, including Transgaz, the plan has been approved, so the City Hall has a green light to move on to the development of the SACET heating system, which will provide hot water and heat for over 1.2 million Bucharest residents”, writes a commentary from Public Relations and Communication Consultancy company Frames Media Network.

“Even though ANAF asked for the second time the adjournment of the hearing, claiming that the amendments to the insolvency law have not yet been approved and that some additional measures are still needed, finally, at the meeting on Monday, things took a positive turnaround, the decision to approve the reorganization plan of ELCEN being influenced by the positions of representatives of Transgaz and of other chirographic creditors”, Frames noted.

According to consultants from Frames, the decision is a real breakthrough for the citizens of Bucharest, given that if the plan had not passed, ELCEN risked bankruptcy and the supply of hot and warm water to over 1.2 million beneficiaries would be suspended. “The plan was voted in the form it was proposed by the judicial administrator Sierra Quadrant, and it is now up to the municipality to go to deeds, which is to pay the debts to the creditors, to take over the ELCEN assets and to implement the plan of measures for the establishment of the SACET under the umbrella of the newly established Energetica SA”, said Adrian Negrescu, manager of Frames.

“There is also in place a decision of the General Council, so things cannot be delayed anymore. Winter comes in and if urgent action is not taken to secure the merger, in order to solve the financial problems and to supply the gas needed for the production of heat and hot water, the situation may worsen in a very short time. Mayor Gabriela Firea must go to deeds”, the quoted source added.