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Dniprooblenergo To Start Bankruptcy Proceedings?

Dniprooblenergo To Start Bankruptcy Proceedings?

30 May 2008

TheDnipropetrovsk Regional Economic Court has opened a bankruptcy case against Dniprooblenergo (DNON). The case was opened following a lawsuit by Central Energy Company (CEC), whom DNON owes USD 2.3 mln. Alexander Paraschiy: The CEC is a minority creditor of Dniprooblenergo: DNON owes 99% of its USD 427 mln payables to Energorynok, the wholesale electricity market operator. At the moment, energy companies are protected from any bankruptcy processes, according to the law on energy company debt offsetting which is scheduled to be finished by January 1, 2008, but may be prolonged further. Until the law on debt offsetting comes to an end this case is unlikely to affect DNON.

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