Hidroelectrica contracts with 'smart guys' to be terminated unless renegotiation meets our terms

Jul 5, 2012, Source
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 'As legal administrator, we declared open to find an amicable solution, I invited them for talks next week. Most of these companies who are still partners of Hidroelectrica showed they were open to attend talks. Of course, we will not be in the situation to accept negotiation conditions, such as reducing the power amount only by 5 percent. Unless the contracts to be signed meet the terms wanted by Hidroelectrica, they will obviously share the same fate [as the contract with Euro-P.E.C, i.e. they will be terminated - editor's note],' said Remus Borza, Euro Insol partner, Hidroelectrica administrator after the company went into insolvency.

Earlier last week, Remus Borza announced the renegotiation of Hidroelectrica bilateral contracts would be concluded in July 2012 and the first contracts, with Euro-P.E.C, had already been terminated.

'We have terminated the first assessed contract, Euro-P.E.C. The others will follow. All of them will be renegotiated, everything will be concluded in three days in July,' said Remus Borza.

The damage incurred by Hidroelectrica following its contract with Euro-P.E.C amounts to 118 million lei, according to the legal administrator, as the company also owes overdue payments to Hidroelectrica. 

'The difference between the reference price and the contract price stands at 118 million lei. Euro-P.E.C failed to pay for the power they got since the beginning of 2012,' said Borza.

Bucharest Tribunal granted Hidroelectrica permission to go into insolvency. The company lodged an application for insolvency on June 15 and, according to chairman of the board Remus Vulpescu, this operation does not aim at bankruptcy or at turning the company public, but at the reorganisation of a company devoid of liquid assets. 

Hidroelectrica shareholders are the Romanian state by way of the Ministry of Economy which has 80.0561 percent of the capital, and Proprietatea Fund.

The company supplies a third of the total electrical power produced in Romania.




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Jul 5, 2012

The contracts we have with the 'smart guys' will be terminated unless they meet the terms dictated by Hidroelectrica, the company legal administrator Remus Borza told private TV channel Pro TV on Sunday.



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