Oltchim will enter insolvency in January 2013, after the elections, said Remus Borza, the receiver of Hidroelectrica and head of insolvency firm Euro Insol. He thinks that Oltchim is "clinically dead" and he doesn't know whether insolvency can work wonders: "I speak from my perspective as experienced insolvency practitioner. I don't know what the government intends to do with Oltchim. I think it is being kept alive artificially, because of the elections. From my point of view, the plant can't be privatized because it has debts of over 1 billion Euros".
"Now,a in order to build a new Oltchim, with performing technology, you only need 250 million Euros. If there is a 1% chance of the plant being rescued through insolvency, I think it needs to be implemented immediately".
* Two investments will be transferred from Hidroelectrica to the ANAR
On the table of the Executive there is a draft Government decision concerning the transfer of two investments from Hidroelectrica to the "Romanian Waters National Administration" (Administraţia Naţională Apele Române - ANAR), with an indemnification from the ANAR of 40 million Euros, said Remus Borza. The project may be approved in today's government session, he said. The value of the compensations will be subtracted from the debt which Hidroelectrica owes the ANAR.
Mr. Borza said that the exit of Hidroelectrica from insolvency is subject to legal, legislative and financial issues, and that it is very unlikely that it will happen this year: "We have 74 disputes to the preliminary creditor table and three lawsuits filed against the opening of the insolvency procedure. The solution will take more than a month and a half. Hidroelectrica has promoted several draft laws by which the state will commit for those mistakes which have led to the deterioration of the financial ratios of Hidroelectrica".
The represe
