Disagreements between management and administrator impede Termocom reorganization

Mihail Cernei, the director of the heat and hot water utility Termocom, has complained at the City Hall's ordinary meeting on Monday that cooperation between the management and the administrator isn't going well. While frictions occur on a technical level – for example the administrator's orders of the day for the Committee of Creditors' meetings are at variance with that of the management – Mihail Cernei claims “obscure interests” are at the root of all problems. Discontented by the situation, Mayor Dorin Chirtoaca noted that the lack of cooperation impeded the utility's reorganization. He asked the Termocom manager to analyze the situation, present any information requested, and cooperate effectively with the administrator and the creditors. The Mayor insisted that teamwork was important, because it was in the best interest of the municipality that Tercomom completed all insolvency proceedings so that it could return to normality. “If the administrator and creditors fail to find middle ground, Termocom could face liquidation”, said the Mayor. Termocom's reorganization plan was due to expire in late September, but the Government extended it until 31 May 2013. Apart from efficiency issues, Termocom's reorganization is meant to settle its 2 billion lei debt.