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SOCIETATEA ENERGETICA ELECTRICA S.A. - EL

Litigation - Transenergo

Release Date: 2/4/2021 7:02:38 PM

IRIS Code: 1E82A

To:                              Bucharest Stock Exchange (BSE)

                                    London Stock Exchange (LSE)

                                    Romanian Financial Supervisory Authority (FSA)

Current report in compliance with the Law 24/2017 on issuers of financial instruments and market operations, the Romanian Capital Market Law no. 297/2004, FSA Regulation no. 5/2018, and the Bucharest Stock Exchange Code

Report date: 4 February 2021

Company name: Societatea Energetica Electrica S.A. (Electrica)

Headquarters: 9 Grigore Alexandrescu Street, 1st District, Bucharest, Romania

Phone/fax no.: 004-021-2085999/004-021-2085998

Fiscal Code: RO 13267221

Trade Register registration number: J40/7425/2000

Subscribed and paid in share capital: RON 3,464,435,970

Regulated market where the issued securities are traded: Bucharest Stock Exchange (BSE) and London Stock Exchange (LSE)

Significant events to be reported: Confirmation of the reorganization plan Transenergo Com S.A.

 

Electrica S.A. (Electrica) informs the shareholders and investors that on 3 February 2021, the term of the case no. 1372/3/2017 of Bucharest Tribunal, Civil Section VII, the court confirmed the reorganization plan of the company Transenergo Com S.A. (Transenergo), proposed by the special administrator. According to this plan, unsecured creditors will not benefit from any distributions of amounts. Electrica holds an unsecured receivable in amount of RON 37,088,830.45 composed of the main debit of RON 35,725,171.45 (from two agreements) and of penalties of RON 1,363,659 calculated until the date of insolvency proceedings’ opening. Considering the fact that Electrica is the beneficiary of an insurance policy in amount of RON 4,000,000, having as object the guarantee of the payment obligations of Transenergo resulting from the BRP Services Agreement no. 77/2005, out of the total receivable of RON 37,088,830.45, the amount of RON 4,000,000 was submitted under the resolutive condition of recovering the amounts from the insurer. Electrica will appeal the sentence confirming the reorganization plan; the execution of the plan is not suspended during the trial of the appeal.

 

We reiterate that at the beginning of 2017, the Romanian energy market entered a turbulent stage, which resulted in significant increases in electricity consumption and market prices, both reaching historic highs. In that context, Electrica had, in its Balancing Responsible Party business line, the aforementioned exposure on its client, Transenergo. Following the client's request for insolvency, while Electrica and another market player filed separate insolvency requests, management expected a low recoverability of the total exposure value. This information was presented in the current report published on BSE and LSE on 31 January 2017.

 

Considering the above-mentioned aspects, we emphasize the fact that the exposure registered by Electrica in relation to Transenergo was fully provisioned, so that the resolution from file no. 1372/3/2017 has no negative impact on Electrica's financial results for 2020 or 2021, the impact being registered in the previous periods (2016 and 2017).

 

Chief Executive Officer                                                         

Georgeta Corina Popescu                                         

 

 



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