New ELCEN reorganization plan, approved by the Creditors’ Assembly

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Bogdan Tudorache

The ELCEN creditors’ meeting approved on Tuesday the new reorganization plan, with the vote of over 98% of the creditors, according to the volume of the liabilities.

Among the new provisions of the plan are the introduction of a new term for the business transfer, the recovery of the debt held at RADET in court and the recovery of about 526 million lei from the adjustment of the VAT tax base – money used to finance the new investment plan.

Thus, the Romanian state has a period of 6 months from the confirmation of the plan by the Syndic Judge in order to carry out the business transfer, through the City Hall of Bucharest (PMB) or the Ministry of Economy, Energy and Business Environment. “If the Romanian state is not interested, ELCEN’s assets will be sold to any private investor who meets the business and legal requirements,” ELCEN officials say.

The solution of the business transfer can be implemented by the Romanian state in three variants: by the Municipality of Bucharest or an entity designated by it in order to build the new thermal centrals (SACETs); by the Ministry of Economy or an entity indicated by it or a newly created company with the participation of the PMB and the Ministry of Economy (directly or through their subordinated companies) in order to take over the ELCEN assets (and possibly also take over the management of the transmission and distribution network from RADET/ CM Termoenergetica) for the plan for new centrals (SACETs).

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