One of the immediate consequences of exiting the insolvency procedures for Hunedoara Energy Complex (CEH) is the immediate exigibility of debts, fact that caused the Complex’s water to be cut yesterday. The regional utility company, Apa Serv, stopped providing the administrative buildings for a summed up debt worth about 60,000 euros (over 270,000 lei, according to radiotimisoara.ro) owed to the provider of water and wastewater services.
Apa Serv Director, Costel Avram, said there were disconnected the administrative headquarters, the CEH –owned Onix hotel, and the central Mine Rescue Station, but the mining operations have not been affected, in order not to disturb the production process, according to the source. He said that if the Administration of CEH will manifest their intention to reschedule debt and pay some bills, water supply will be resumed.
Although water debts accumulated in recent years, the company was insolvent and could not be disconnected for non-payment. After the insolvency decided by Court, water was cut by the supplier.
Just after becoming insolvent in June 2016, the CEH has lost this status earlier this November after a decision of Alba Iulia’s Court of Appeal, which annuled the initiation act. Energy Ministry only had to see CEH going out of insolvency.
“Exiting the insolvency for Hunedoara Energy Complex is not a favorable situation and does not create the premises of an easy process of restructuring the company. Even in this situation of the company, that has huge financial difficulties and does not benefit from the protection of insolvency, the objective of the Ministry of Energy remains the same: to restructure and make the company more efficient,” says a recent statement of the Ministry.
And CEH and now risks bankruptcy. “There are risks in this (…) They are quite big risks, I hope we’ll manage them,” said Corina Popescu, Secretary of State with the Energy Ministry, at a conference organized by Focus Energetic. She, however, believes that there will be a certain support from creditors to “rescue areas considered viable.”
CEH can not enter into bankruptcy proceedings without a new procedure of insolvency, writes Hotnews. It would be the third time the CEH would enter insolvency procedures, previosuly each time proceedings being interrupted by Alba Iulia Court of Appeal.
