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PM Orban: RADET's bankruptcy imminent

Inquam Photos / Octav Ganea
Ludovic Orban

Prime Minister Ludovic Orban said on Wednesday that the bankruptcy of the public heat distribution corporation RADET is "imminent". 

"As far as I know, the court is to rule on Monday on RADET's bankruptcy procedure and in my view, data shows bankruptcy is imminent. We've had the statement of the minister of Economy about the possible discontinuation of hot water supply in Bucharest, should RADET go bankrupt. Sure, the law provides for the obligation to not halt the supply of heating agent in the cold season, yet on one condition: to have a company the supply service is delegated to and which should have a contract with [electricity and heat producer] ELCEN so that it is able to distribute the heat from the producer. If RADET goes bankrupt, we automatically must sort out the issue of the company capable of supplying the heat under a delegation from the City Hall and that should also have a contract with ELCEN," Orban told broadcaster B1 TV. 

He added that he cannot understand how RADET has piled up 1 billion lei in debt. 

Minister of Economy, Energy and the Business Environment, Virgil Popescu, said on Wednesday that RADET could go into bankruptcy on Monday, and the City Hall must be prepared for this situation. 

"Tomorrow we will have a meeting on this topic and I want the City Hall to be very aware that RADET's bankruptcy may be declared on Monday. ELCEN is ready to deliver heat, but the City Hall must be prepared to find a solution with a company to buy the heating agent. (...) The City Hall has to make sure that the entire subsidy to ELCEN is paid," the minister said. 

In the same context, Bucharest general mayor, Gabriela Firea, said on Wednesday that the supply of the heating agent will not be discontinued whatsoever, regardless of RADET and ELCEN's legal and financial situation.

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