Romanian Power Generator Hidroelectrica Files for Insolvency

Hidroelectrica SA, Romania’s state- owned hydro-power generator, filed for insolvency last week, without mentioning the reason, the Economy Ministry said in an e-mailed statement.

The first court hearing on Hidroelectrica’s request was set for June 20, Mediafax news service said today, citing a court document.

The government pledged to the International Monetary Fund and the European Union to renegotiate some bilateral contracts of the country’s biggest power producer with some companies such as Alro SA (ALR), which are under investigation by the EU’s competition regulation for possible state aid on selling power at below-market prices.

Romania plans to sell a 10 percent stake in Hidroelectrica this year.

To contact the reporter on this story: Andra Timu in Bucharest at atimu@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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