The new receiver sees Hidroelectrica listing taking place in 2017

Bogdan Stănescu, the new receiver of Hidroelectrica SA, who is also the head of the Companies Department of the Ministry of Energy, sees the listing of the company in 2017, approximately one year after exiting insolvency.

He told us: "We have to see the company stand on its own two feet, after it exits insolvency. We will have managers and board members appointed based on Ordinance 109 concerning corporate governance. I want the company to exit insolvency in the first semester of 2016. But for that to happen, the judges need to resolve all the disputes filed in this case".

The representative of Hidroelectrica told us that taking the company public while it is going through insolvency is not a feasible, professional solution, and added that the authorities will conduct a new analysis on what the opportune time would be for an IPO after the insolvency procedure ends.

"Today, the data shows us that the IPO would be the best solution for the company. The steps for preparing the listing can be taken during insolvency as well", Bogdan Stănescu further said.

He mentioned that Hidroelectrica is nearing the end of a successful reorganization, and the replacement of the receiver does not represent a disruption of that process: "The reorganization measures implemented so far will have continuity. My relationship with Remus Borza, the official receiver, is sincere and fair. it is normal for the state to wish a tighter cooperation with the receiver so that together we can successfully take the company out of insolvency. I have experience as receiver at Oltchim, a plant which many thought was bankrupt. The fact that Oltchim now stands on its own two feet and that it is showing timid signs of a turnaround is proof that if a company is managed correctly, it can survive without problems on the market it operates on".

The new Hidroelectrica receiver says that in his activity within the company, he will rely on specialists and executives and that he wants to conduct an evaluation of the managers based on performance criteria. Bogdan Stănescu has made its goal to have talks with the unions as well as with the heads of the company's branches, to assimilate as soon as possible the information needed to manage the company.

"I hope we are going to make a good team and to build something together, not to show hubris, which doesn't lead to any good results", he concluded.

The Hidroelectrica shareholders decided on Tuesday, to replace Gabriel Dumitraşcu as receiver of the company, as announced by BURSA exclusively on June 11th.

The idea of putting Hidroelectrica in insolvency was launched in spring by official receiver Remus Borza, even though that did not help the company escape the headaches of the legal battles with the "clever boys" in the energy sector. Initially, he estimated that the exit from insolvency would happen in the first semester of 2015, but the delays in the hearings overturned his plans. Mr. Borza did not hide the fact that he wanted the company to get listed even while it was still going though insolvency, if Hidroelectrica did not complete the procedure until May next year, despite the fact that the head of the Executive, Victor Ponta, ruled out that option and that many analysts have warned that the idea is not beneficial, despite the company's very good financial results.

In the first semester, the company had a profit of 725 million lei, up 42% YOY, when the company had a profit of 510 million lei, according to data published by the receiver. The turnover in the first six months of 2015 has also increased 300 million lei YOY, from 1.554 billion lei to 1.851 billion lei. The increase in turnover was caused by higher output seen by the company in the first half of 2015, when it produced 9.6 TWh, up 1.1 over last year's similar period.

The receiver also announced that on June 20th, 2015, the last installment of the 24 that pertained to the debt owed to the body of creditors was repaid. Hidroelectrica is the only Romanian insolvent company that repaid its debts at their face value. The company has repaid 3.817 billion lei of the total 4.313 billion lei which are part of the body of creditors, as the amount of 496 million lei that is not yet repaid consists of installments pertaining to the loans and credit lines that are due by September 15th, 2021.