* Euro Insol: "Other banks may also call-in their loans early, prior to the insolvency being declared"
On June 19th, Libra Internet Bank SA has sent a notification about the early call-in of a loan to Hidroelectrica, according to a report by Euro Insol, the receiver of the energy maker. On June 20th, the Court of Bucharest admitted the request of Hidroelectrica to file for insolvency, for the purpose of reorganization.
The entire balance of the loan granted by Libra Internet Bank, (11.958.082 lei), became fully payable. The loan was guaranteed by assigning the receivables which Hidroelectrica had to earn from EF Electrica Furnizare Transilvania Sud and through the pledge on all the accounts opened with Libra Bank SA.
According to Euro Insol, the bank said the decision was caused by the company's failure to file the second quarter reports for 2011, by its deteriorating financial situation and by the fact that the degree of coverage of the balance of the loan became inadequate (it was no longer covered by the collateral).
The Euro Insol report states: "Considering the depreciation of the financial and economic indicators of Hidroelectrica and the levels which were stipulated in the loan agreements, we consider that other banks may call-in their loans as well, which would have led to the default of Hidroelectrica. ON December 31st, 2011, Hidroelectrica owed a total of 4,146,751,166 lei, of which 2,639,156,284 lei were debts with less than 1-year maturity, and 1,507,594,882 lei debts with more than 1-year maturity".
Out of the total loans with a maturity of less than 1 year, 1.09 billion lei are loans, 1.1 billion lei are commercial debts and 258.6 million lei are granted dividends.
Euro Insol claims that the cashflows generated by the activity of Hidroelectrica, in general and through the day-to-day operations, are insufficient to fin
