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Hidroelectrica insolvency is “shocking” and “historic,” but poses no risk

Jul 1, 2012, Source
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Vulpescu went on by saying that the judicial administrator must come with an explanation about why Hidroelectrica reached this situation. Lawyer Remus Borza, who controls Euro Insol – the firm appointed as judicial administrator of the energy company – explained that the decision of running insolvent should have been made by the previous management of the company, and that the judicial administrator will present, in July, its report on why the company is now facing this situation. Asked about the risks posed by insolvency for Hidroelectrica, both Vulpescu and Borza assured that there is no risk. “There is no risk, only benefits,” Borza clearly stated.Lawyer Remus Vulpescu, head of the Office for State Interests and Industrial Privatization (OPSPI) and special administrator of Hidroelectrica, added that as long as the energy producer is in insolvency, no other state company will be put in a similar situation. Vulpescu recently resigned as administrator of Transelectrica and invoked a supposed link between another manager of the company and a company that receives energy from Hidroelectrica under a direct contract. In his turn, Remus Borza mentioned that each state-run companies should undergo an insolvency process.Vulpescu went on saying that, as chief of OPSPI, he informed the minister of Economy, Daniel Chitoiu about the “potential” state of insolvency present not just in Hidroelectrica, but also in other state companies. He added that he did not consult PM Victor Ponta when he decided to seek the insolvency of Hidroelectrica, and the premier did not reprimand him for doing so.The judicial administrator of Hidroelectrica, Euro Insol announced that it will seek amicable solutions regarding the energy direct sale contracts, during talks it will initiate in July, but if the beneficiaries of these contracts will not accept the new conditions, the contracts will be denounced. Friday, in an interview with Money Channel, Remus Borza said that these bilateral contracts with the “smart guys” are not the only burden of Hidroelectrica.

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