Bogdan Tudorache

The syndic judge of the Bucharest Tribunal confirmed the modified reorganization plan of ELCEN. After this decision, the Romanian state has a period of six months to carry out the business transfer in such a way that the ELCEN company remains in the patrimony of the Romanian state, reveals a company release.

If no decision is taken within this period, Sierra Quadrant, the judicial administrator of ELCEN, has the opportunity to initiate proceedings to sell ELCEN assets to a private investor who meets the legal requirements.

“We have not only a contractual obligation, as a designated judicial administrator, but also a moral one towards the people of Bucharest, towards the ELCEN employees. The Romanian state still has the necessary levers to, within 6 months, keep in its patrimony this economic objective with strong social connotations and to revitalize it, respecting the laws of the market economy,” said Ovidiu Neacșu, founding partner of Sierra Quadrant.

“The moment of truth has come and is forcing our officials to stop the classic political ping-pong and sit down to take a decision. If even now they will not be able to collaborate to save a company of strategic interest, I am convinced that a private investor will be found willing to acquire ELCEN’s assets,” Neacșu added.

According to the new reorganization plan, the business transfer solution can be implemented by the Romanian state in three variants: by the Municipality of Bucharest (PMB) or an entity designated by it in order to achieve SACET (Centralized Thermal Energy Supply System); by the Ministry of Economy or an entity designated by it or by a newly created company with the participation of PMB and the Ministry of Economy (directly or through companies subordinated to them) in order to take over ELCEN assets (and possibly take over the administration of the transmission and distribution network from RADET/ Termoenergetica) for the creation of SACET.

Other important changes, provided in the new reorganization plan, concern the way of recovering the RADET claim, recovering the amounts paid in the VAT account, following the bankruptcy of RADET and extending the reorganization term by 3 years with the maximum duration provided by law, respectively by another 12 months.

Thus, the recovery of the ELCEN claim held against RADET will be made in court, meaning that the judicial administrator has already proceeded to formulate the action in order to engage the liability of PMB.

At the same time, the VAT tax base will be adjusted (according to the provisions of art. 287 letter d) Fiscal Code, as amended by Law 30/2019), so that ELCEN will recover an amount of about 526 million lei, which will be used as a source of financing the reorganization plan.

”Our intention is to find the best solution so that ELCEN can provide the thermal agent necessary for the distribution of hot water and heat at optimal parameters, regardless of the season. We are convinced that, considering the economic and social context, an optimal solution will be quickly found so that the people of Bucharest can avoid the problems with heating and hot water in the perspective of the cold season,” Ovidiu Neacșu also said.