The Romanian energy company Complexul Energetic Hunedoara (CEH) will go bankrupt.

The only solution to save it is for the state to compensate the EUR 268 million debts that the company has at the coal mines that supply it, according to CEH judicial administrator.These should be transferred to a new firm that receives state aid, reports local Economica.net.

A reorganization plan means paying the debts in 3-4 years. However, due to the delay in filing for the insolvency procedure, the debts have reached a very high level, and the chances to pay them are very low, according to the judicial administrator.

The company should make profit in order to pay its debts. However, the producer doesn’t meet the legal environmental conditions to continue operating. It doesn’t have the necessary resources to purchase greenhouse gas emission allowances related to its operation in 2015. Its two plants don’t have an environment permit.

editor@romania-insider.com