Euro INSOL, the judicial administrator of Romania’s insolvent energy producer Hidroelectrica, filed on Tuesday (June 11) the company’s reorganization plan in court.

“Today, we submitted the reorganization plan to court and we called for a general meeting of creditors, on June 18. If the judge approves the plan, the company will exit insolvency on June 26,” said Remus Borza, the lawyer handling Hidroelectrica’s insolvency case, quoted by local news agency Mediafax.

If the Romanian state-owned company exits insolvency by late-June, Remus Borza will get a bonus worth EUR 2.2 million.

Hidroelectrica entered the insolvency process on June 20, 2012, and Euro INSOL was appointed the judicial administrator. According to some recent statements made by the Minister Delegate for Energy, Constantin Niţă, the state-owned energy producer will exit insolvency procedures on July 1 this year.

“We will promote professional management as it was done for all the state – owned companies, then we will list 10 percent on the stock exchange. We will set a list of priorities because a lot of investments have been started. We have to go back to what we’ve always said, namely to efficiency,” said the Romanian Minister. Constantin Niţă also added that even if Hidroelectrica exits the insolvency procedures, the company will remain with debts, which will be paid in stages.

In the first quarter of 2013, the company reported a profit of EUR 32.8 million and a turnover of around EUR 150 million. On March 31, 2013, Hidroelectrica had some 4,900 employees, down from over 5,200 recorded when the company entered the insolvency process.

Irina Popescu, irina.popescu@romania-insider.com