Sierra Quadrant, Elcen’s judicial administrator, on Thursday ordered the full payment of the money owed to the company’s creditors.
The measure comes two days after Sierra Quadrant put Elcen’s insolvency exit to a vote in the creditors’ meeting, as a result of the delay by the Bucharest City Hall of the business transfer procedure.
“The efforts of Sierra Quadrant to contribute, through the design of the reorganization plan, to the construction of the Centralized Thermal Energy Supply System (SACET), have unfortunately met with opposition from the Bucharest City Hall (PMB). The representatives of this institution did not provide so far the reason why, although they agreed with the solution proposed by our company (going through almost all the necessary steps for implementation), they decided to end the official communication and, implicitly, to withdraw from the project,” the release states.
According to the quoted source, the solution to the exit from insolvency, in the absence of business transfer (takeover of Elcen assets by PMB), is needed for eliminating the risks of Elcen going bankrupt, losing cogeneration bonus and losing opportunities to attract non-reimbursable European funds related to meeting the environmental requirements imposed by the relevant European fora.
“The whole insolvency exit proceedings will therefore be completed as soon as possible,” said the representatives of the manager of the thermal energy producer.
Two days ago, Electrocentrale Bucureşti SA (Elcen) announced the initiation of steps to extinguish all payment obligations assumed by the reorganization plan in order to close the judicial reorganization procedure and, implicitly, the insolvency procedure.
Elcen’s exit from financial difficulties makes it possible to access non-reimbursable external funds from the European Union or bank loans for the modernization of its thermal power plants, in accordance with European and national rules on environmental protection.