The Vâlcea Tribunal has confirmed the reorganization plan for CET Govora, judicial administrator Euro Insol announced in a press release. The reorganization plan, approved by the Creditors’ Assembly in June 2018, provides for the payment of approximately 100 million lei to the creditors of the company and the completion of environmental and refurbishment investments amounting to 187 million lei.
CET Govora is the only supplier of industrial steam for Oltchim and Ciech Soda Romania. At the same time, the complex is the only supplier of hot water and heating to the population and public institutions (schools, kindergartens, hospitals) in Râmnicu Vâlcea.
In May 2016, the Tribunal initiated the insolvency procedure of CET Govora as a result of the depreciation of the financial-accounting indicators: debts of 438 million lei, negative capital of 96 million lei, credit line of only 170,000 lei, while the monthly salary fund exceeded 10 million lei.
With the measures implemented by the legal administrator Euro Insol, CET Govora substantially revived its financial results. According to Euro Insol, in 2017 the company had a net profit of 18.5 million lei, after a 96.6 million lei loss in 2015, and a nearly 2 million lei loss, in 2016.
During insolvency, CET Govora finalized in June 2016 the implementation of the project financed under the POS Environment Priority Axis 3 Program – “Rehabilitation of the district heating system in Râmnicu Vâlcea for the period 2009-2028 in order to comply with the environmental legislation and to increase of the energy efficiency”, Euro Insol says. The project was 209 million lei worth, and it meant construction of a gasification desulphurization plant at the 7th Boiler, as well as capital repairs.
In order to maintain the validity of environmental permits, CET Govora signed in May 2018 a contract for the realization of the ” System for Desulphurization of the Combustion Exhaust at the C5 and C6 Coal Boilers – Combustion Plant no. 2″. The deadline for compliance provided by the environmental legislation in force is June 30, 2020, and the value of the works contract is almost 97 million lei. Payments will be made from own sources, resulted from the company’s current activity.