site.bta AES Expects to Receive Overdue Receivables from NEK before Year's End, Ready to Accept Some Delay

AES Expects to Receive Overdue Receivables from NEK before Year's End, Ready to Accept Some Delay

Sofia, November 19 (BTA) - Electricity producer AES Maritza East
 1 said that they hope to receive their overdue receivables from
 the National Electricity Company (NEK) before the end of this
year but added they are willing to discuss a postponement. The
power plant's management held a news conference here Thursday.

The debt in question totals 600 million leva.

The US-owned power plant and NEK have an agreement setting
November 30 as the deadline for the payment of NEK's debt,
whereafter NEK will reduce the availability price it pays to AES
 Maritza East 1. 

NEK, through its parent company Bulgarian Energy Holding, is
trying to secure a loan to pay up to this and another US-owned
power plant, ContourGlobal Maritsa East. A procedure for direct
negotiations is currently underway with 12 lending institutions
which have shown interest.

AES Maritza East 1 CEO Olivier Marquette believes it is unlikely
 that the two parties meet the November 30 deadline due to the
delayed borrowing procedure. He said they are aware, from their
communication with the government and with the Bulgarian Energy
Holding, that they are working hard on the matter. 

Under the agreement signed between NEK and AES Maritza East 1
and  ContourGlobal Maritsa East 3, the availability price will
be reduced by 14 per cent for AES and by 17 per cent for
ContourGlobal provided that NEK pays the amounts due to the two
power plants for electricity produced but unpaid so far. For
their part, the power plants will be able to pay up 350 million
leva in debts to the Maritsa East Mines. Maritza East 1 alone
owes some 120 million leva, said Marquette.

He said that his company expects the agreement to be fulfilled
in the next month or two, and that they will work with the
creditor banks which have approved the agreement, towards
extending the deadlines.

AES Maritza East 1 trade director Ivan Tsankov said that they
have the creditors' formal approval until the end of 2015. "With
 the steps which are being taken, we still see a chance for the
payment to go through before the end of the year," he added.