Energy Report

The large insolvencies in the construction industry give energy companies a hard time. OMV Petrom, Enel, Chevron, and other companies need to recover debts from bankrupt companies The large insolvencies reported in the construction industry in the last

The large insolvencies in the construction industry give energy companies a hard time. OMV Petrom, Enel, Chevron, and other companies need to recover debts from bankrupt companies

The large insolvencies reported in the construction industry in the last few months affected the budget of the most important energy companies. Most of the large energy companies need to recover debts from companies such as Romstrade (owned by Nelu Iordache), from the local subsidiary of the Austrian giant Alpine, or from Constructii Carpati in Brasov, only to mention a few of last year’s important insolvency cases.

OMV Petrom requested 34.6 million lei from the construction firm Alpine SA, which last year “produced” the largest and most unexpected insolvency in the local construction industry. The Romanian subsidiary of the large construction firm Alpine Bau (the second most important construction firm in Austria) filed for insolvency on September 24th, 2013, following an uncontrollable expansion in Romania and other markets outside of Austria. In the preliminary table of debts, OMV Petrom has been accepted momentarily with only 500,000 lei, while the remaining debt of 34 million lei must be proved through an expertise report, is shown in a report by the Transylvania Insolvency House (CITR), the judicial administrator.  

Alpine hadn’t signed contracts only with OMV Petrom, of the large energy companies. Thus, for its office in Mogosoaia, it received gas from GDF Suez at a final price of 94.33 lei/MwH, according to a contract signed in December 2010. Moreover, its energy provider was Enel Energie Muntenia. However, OMV Petrom still has to recover the largest amounts. For instance, in the preliminary table of debts, Enel only needs to recover 42,000 lei, which is significantly less than the amount of 34.6 million lei requested by OMV Petrom.

From Romstrade, one of Romania’s largest construction firms in the last few years, whose special managing director was the same Nelu Iordache, the controversial businessman who controlled the company before it filed for insolvency, Enel Distributie Muntenia needs to recover more than 10 million lei. Among the creditors of the controversial Nelu Iordache, but with smaller amounts to receive, are other important companies, such as Chevron Romania, CEZ Distributie, CEZ Vanzare, Enel Energie Muntenia, Enel Energie, or E.On Gaz Distributie.

Another large construction firm that filed for insolvency last year was Compania de Constructii Carpati from Brasov, which, during the PD-L government, was in charge of the state construction projects in Brasov (for example, at the County Council, the City Hall, the County Police Inspectorate, the TBC Hospital, the Emergency County Hospital, the C.F. Brasov General Hospital, the Brasov CFR Railway station). Only a few contracts with private construction firms can be added to the list. Among the companies that need to recover debts are Uzina Termoelectrica Giurgiu, Electrica Furnizare or Electric Group from Cluj.