The judicial administrator of Elcen, the insolvent heating and hot water supplier in Bucharest, Sierra Quadrant, mentioned that chances are high that the company will stop supplying hot water since the municipality refuses to pay overdue bills worth RON 217.5 million (EUR 45.8 mln), Mediafax reported.

Nearly half of that sum (RON 110.7 mln) is more than 90 days overdue.

Under these circumstances, Elcen’s judicial administrator will convene the board of creditors to decide whether Elcen should stop deliveries to Radet, the heating and hot water distribution firm controlled by the municipality.

Recently, Quadrant accused the municipality of deferring as much as possible the transfer of activity from Radet to the newly formed municipal company, with the aim of accumulating as much as possible overdue debt in the accounts of Radet, a company that is going bankrupt anyway. 

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editor@romania-insider.com