Electrocentrale București (ELCEN) will receive gas from Romgaz until the end of the year, and will mortgage assets belonging to CET Progresul to restructure the debt it owns to the gas supplier, said for Profit.ro the general manager of ELCEN, Marcel Nicolaescu. In context, Romgaz owns 2.5% of ELCEN, and has taken over from the producer of heat a gas-fired plant located in Iernut.

The extension of contract until 30 September 2016 is possible only if the debt rescheduling agreement is concluded with ELCEN in certified form, along with the signing of a real estate mortgage guarantee no later than 29 December 2015, stated Romgaz.

Until December 15 Romgaz sought an agreement rescheduling of outstanding debt, including guarantees constituted by ELCEN for payment dues (ex. letters of guarantee, assignment of receivables, reduce payment periods to 15 days, advance payment of deliveries or any other measure). Contract extension for another two weeks assumes that by the end of this year ELCEN can prepare hot water and heating to deliver through RADET pipes to citizens of Bucharest.

“We extended the gas supply contract with Romgaz until 31 December, through an addendum. We will rank mortgage in Romgaz’s favor on ELCEN assets located at CET Progresul, representing various installation, turbines and accessories. Based on these mortgages we hope to sign sooner the agreement to reschedule outstanding debts against Romgaz, the negotiations are going well. We will reschedule also the debt that we have to Distrigaz and Transgaz”, said to Profit.ro Marcel Nicolaescu.

Nicolaescu said that the rescheduling debts of Romgaz will be done over a period of 3 years, with 1 year exception. “We want, on the other hand, the City Hall to guarantee RADET debt payments to ELCEN. As they say, we have decided to put the foot down. We want the City Hall to be a third party guarantor for RADET debt”, said he.