CITR transfers the CET Palas steam power plant in Constanta to the public assets of the local authorities

CITR, the leader of the restructuring and insolvency market in Romania, announces that the “CET Palas” steam power plant in Constanța, owned by Electrocentrale Constanța SA, has been transferred to public state assets, through the successful completion of the mechanism provided for in Emergency Ordinance no. 60/2019.

The asset’s transfer value is of 107.7 million RON, against the market value set in the insolvency procedure.

“The power plant transfer is a solution identified by the CITR team, as judicial administrator of Electrocentrale Constanța, in its mission to save the company’s activity by ensuring the continuity of production of hot water and heat carrier in the Municipality of Constanța. The transfer represents one of the pillars for restructuring Electrocentrale Constanța’s activity. The long-term strategy is to include CET Palas within an operationally and energy efficient SACET, able to self-support. This highly complex process was carried out with the support of the Constanța City Hall, the Ministry of Energy, and the Ministry of Public Finance, who provided a lot of involvement, openness and a long-term vision”, said Florin Constantin, CITR Partner.

An industrial asset of interest for the national power system, the “CET Palas” power plant used to belong to Electrocentrale Constanta SA, one of the few economic operators in Romania that could meet the legal requirements on the transfer of such assets under the special provisions of Ordinance 60/2019.

The process is closed by the approval of the Government Decision on transferring the asset from the State public holdings to the UAT Constanta’s public holdings, adopted June 22nd, 2023.