The Bucharest Court of Appeal announced on November 11 its final decision on the bankruptcy of the municipal heating distribution company RADET, a decision initially issued in April but appealed by the City Hall. Under the law, pursuant to the bankruptcy, liquidation procedures should begin, Hotnews.ro reported.

However, RADET’s assets are insignificant compared to the RON 3.9 billion (EUR 820 mln) debt owed by the municipal company.

The main creditor is Elcen heating and energy producer, controlled by the Ministry of Economy, which is itself in insolvency due to its huge unpaid natural gas bills.

Elcen claims RON 3.8 bln from RADET. Minister of economy Virgil Popescu assured that Elcen would keep delivering heat to the distribution network controlled by Bucharest municipality, but a formal solution should be sketched.

The municipality prepared another company, Termoenergetica, that will take over the management of the battered heating distribution network in Bucharest.

But Popescu mentioned that Termoenergetica is not yet licensed by the energy market regulator body ANRE.

“We can assure the population of Bucharest that Elcen will not interrupt the supply of heat,” stated Popescu.

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editor@romania-insider.com