If Debt-Free, Romania’s Coal Mining Co CNH Could Be Profitable – Fin Min

Vosganian said public reactions to the government’s decision to block foreclosure procedures at CNH are “excessive”, as the measure was not “populist, but it was meant to protect some of Romania’s significant natural resources.”

“Today, if CNH were to be debt-free, it might become profitable and it might even have a more sustainable investment program than the one we (the government – e.n.) started last year. I believe in the viability of the coal basin in Petrosani and I do not see why we should doom those resources and condemn 12,000 people to unemployment because of a past error. Therefore, I believe that our initiative to find a working formula for Compania Huilei needs to be supported, and it must not be regarded through the narrow passions of an election year,” Vosganian said.

The Romanian government Wednesday decided to block for six months the foreclosure procedures initiated at CNH to recover debts worth 844 million lei (EUR1=RON 3.5434) to the state budget.

The measure will allow the company to continue its activity and pay salaries.

Vosganian said the Ministry of Economy and Finance has six months to find a suitable solution to reorganize CNH’s activity, so that all its debts will be written off.

CNH is state’s biggest debtor, with RON2.9 billion debts to the state budget.

The European Commission approved a state aid worth nearly RON1.29 billion to CNH between 2007 and 2010.

Authorities said last year they plan to create a power complex that would include CNH and thermal power plants Mintia and Paroseni, in order to improve the coal mining company’s activity. Another option to turn the company efficient was to erase the company’s debts.

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