Work on the Slatina 3 geothermal exploration field in Virovitica-Podravina County came to a halt this summer due to the pre-bankruptcy situation of the investor, EES Dravacell Energetika. However, the project has recently acquired a new co-owner: the Swedish company Danir.
Danir’s business model combines developing its own ventures with investing in projects initiated by others. It has invested in the British company Cindrigo, which owns 90% of EES Dravacell Energetika, the concessionaire for the Slatina 3 exploration field. This summer, Cindrigo announced its decision to withdraw from further drilling at Slatina after investing £5 million in the project. This decision followed a denial by the Hydrocarbon Agency (AZU) to extend their drilling permit. The underlying issue was that the geothermal exploration permits had reached the maximum number of allowable extensions set by the Ministry of Economy, and Cindrigo had missed all drilling deadlines, leading to the expiration of their concession in April.
In conjunction with their withdrawal, Cindrigo initiated bankruptcy proceedings for EES Dravacell Energetika. Cindrigo maintains control over EES Dravacell through Cindrigo Geothermal Limited, based in London, where Danir now holds a 49.1% stake. Danir acquired this co-ownership through a series of loans to Cindrigo, totaling £4.5 million, provided in October and November of last year and January of this year. This amount is also recorded as a debt in the pre-bankruptcy proceedings of EES Dravacell Energetika. The resolution of creditor relations will occur during the bankruptcy process.
Despite the bankruptcy, the concessionaire remains obligated to rehabilitate the well at the Slatina 3 exploration field. Failure to do so may prompt the state to activate the bank guarantee that was required when the concession was granted.
EES Dravacell Energetika was awarded the concession for Slatina 3 in 2018, initially owned solely by a local entrepreneur who sold 90% of his stake to Cindrigo in September 2022.
