Restructuring at Hidroelectrica

Hidroelectrica Company announced restructuring including among management.

The company is insolvent, and the receiver of Hidroelectrica, Remus Borza, hopes to solve problems in the coming months.

Remus Borza says though those also other state enterprises are in similar situation, and calles 2013 the year of the great insolvency law.

Special administrator of Hidroelectrica, Remus Borza, believes that Oltchim, the Romanian Post and Termoelectrica should enter into insolvency in order to be restructured and transformed into profitable companies.

"No insolvency guarantees miracles in Oltchim. Therefore, the liquidation is not a benefit for anyone and privatization is not sustainable at current organizational model of the factory, of no interest to anyone. It is not a solution to quit", said Remus Borza.

Jobs blocked

Special administrator Hidroelectrica presented on Thursday the balance of nearly six months of special administration of the company and announced the layoff until June the 30th of the 500 employees of Hidroserv and Thursday, 154 employees of Hidroelectrica received notice of dismissal.

161 jobs were blocked, and the directors were changed, said Remus Borza.

"I had willingness to pay also a number of redundancy payments. Obviously the union, not signing the protocol on January the 11th, determined that these layoffs today to be zero redundancy payments.

"The new organization reduces the number of directors from 79 to 57. No director from the old guard of Hidroelectrica does not appear in leadership positions," said special administrator of Hidroelectrica.

After termination damages, renegotiation of others, cuts and cuts and premium increases, but also quitting the divestment disadvantage, Remus Borza estimates for Hidroelectrica a record profits for 2013 of 430 million lei.

Hidroelectrica special administrator wants to ask the bankruptcy judge leaving the insolvency hearing on June the 26th.


Translated by Alexandra-Diana Mircea
MTTLC, Bucharest University