Romania's energy minister Virgil Popescu will meet European Commission (EC) representatives at the beginning of this week in Brussels to convince them to approve the state aid for the state-owned coal and power producer CE Oltenia (CEO), according to Bursa.ro.

In related news, CE Oltenia reportedly approached its only minority shareholder - Fondul Proprietatea - and European banking institutions to secure financing for the restructuring plan, Adevarul daily reported.

Minister Popescu expressed confidence that the Commission would approve the state aid in time for CEO to use it and purchase the emission certificates related to last year's production by the end of April.

On 5 February, the European Commission launched an in-depth investigation into CE Oltenia's restructuring plan expressing serious doubts about the plan standing chances to be declared compatible with EU norms. The Commission's concerns include the lack of support for the restructuring plan from other shareholders and creditors, the lack of a financial contribution from the company (other than the expected profits generated), the uncertain post-restructuring sustainability of the business, and the negative impact on the business climate resulting from such state aid.

CE Oltenia's attempts to approach Fondul Proprietatea and "European banking institutions" are visibly aimed at addressing the European Commission's key objections.

CE Oltenia is supposed to contribute EUR 1.5 bln from its own resources to the restructuring plan. Under the plan sent to Brussels, the company indicated these funds as resulting from its profits in the coming years - a source rejected by the EC as not qualifying as financing.

iulian@romania-insider.com

(Photo source: Facebook/Complexul Energetic Oltenia)