The judges of the Bucharest Court decided on April 17 the bankruptcy of Bucharest's heating provider Radet.

"Unless we succeed in suspending the bankruptcy at the Court of Appeal, within ten days all the activities will stop, the operating licenses will be lifted, and the City Hall will separately develop the public service of heating," said Radet's legal administrator, lawyer Gheorghe Piperea, according to Wall-street.ro.

He added that the heating and electricity producer Elcen (itself under insolvency), which holds the largest volume of claims against Radet, voted for the bankruptcy in the creditors’ meeting.

While Radet is under the Bucharest City Hall's control, Elcen is controlled by the Energy Ministry.

Sierra Quadrant, Elcen’s legal administrator, recently announced that the company is likely to stop supplying the capital with hot water because the City Hall has not paid the heating subsidy, and, therefore, Elcen can't pay its invoices to suppliers.

editor@romania-insider.com

(Photo source: Pixabay.com)