Electrocentrale Bucureşti SA (Elcen), the main supplier of thermal agent for the centralized heat supply system in Bucharest and one of the most important producers of electricity at national level, announces the initiation of steps to extinguish all payment obligations assumed by the reorganization plan in order to close the judicial reorganization procedure and, implicitly, the insolvency procedure, according to a release.
Following the approval of Elcen’s financial statement by the Creditors’ Committee, the context is set for the distribution of outstanding amounts to unsecured creditors, the last category of creditors targeted for the payment of claims in accordance with Elcen’s amended reorganization plan.
Immediately after the payment of the claims, Elcen will make the legal steps at the Bucharest Tribunal for the exit from the insolvency procedure and the reintegration of the company in the economic circuit.
According to the release, Elcen managed to recover its activity as a result of the availability and efforts of the representatives of the company, which is in financial difficulty, to find viable solutions to overcome this situation. Although, from a statistical point of view, the number of companies recovered and reintegrated into the economic circuit is small compared to the number of companies deregistered, both the decision-making structures within Elcen and the employees have dedicated themselves to this approach, resulting in the best and most applied ideas for the recovery.
Elcen’s exit from financial difficulties makes it possible to access non-reimbursable external funds from the European Union or bank loans for the modernization of its thermal power plants, in accordance with European and national rules on environmental protection.
The investments create the favorable context for observing the energy efficiency criteria, ensuring the continuity of the supply of the thermal agent necessary for the distribution of hot water and heat to the inhabitants of the Capital connected to the central heating system and providing essential electricity for Bucharest and the national energy system.
“Although Elcen has made every effort to get out of insolvency in order to strengthen its vital economic and social role, both for energy security at the national level and for the Capital’s district heating system, there is still a need for an efficient collaboration between all participants in the central heating system of the Capital (Government, Bucharest City Hall, Elcen-Termoenergetica), so as to identify the best solutions to maintain the favorable context created by this exit from insolvency,” states the quoted source.
Electrocentrale Bucureşti entered insolvency proceedings in 2016, based on a coherent reorganization program in which the priority is to streamline the company’s activity, in order to improve its financial situation. The reorganization plan of the company, in order to streamline the activity, was submitted in 2018.