The investment plan for the Elefsina Shipyards

By Anastasia Vamvaka

On track… The Elefsina shipyard in Syros is moving, as after 12 years, the new investment plan promises to give life again not only to the reservoirs, but also to the whole of Western Attica.

In the hope that the draft law for the consolidation and utilization of the Elefsina Shipyards, which has been prepared in cooperation and consultation with the Ministries of Development and Investments, Finance and National Defense, will be tabled immediately – even this week – so that it can be completed its vote by the end of the month, ONEX has already achieved a first major victory: the overwhelming majority of workers declaring their support for its effort.

After consultations with both the workers’ union and the Panhellenic Federation of Metalworkers, it has already been agreed – without any contractual obligation – that all of the Shipyards’ debts to the workers will be repaid. The bilateral agreement includes the repayment of 30% of the debts, approximately 27 million euros, once the judicial part of the consolidation is completed, as well as the severance benefits of approximately 13.4 million euros, which will be repaid through equity or intercompany facilities and bonds.

The remaining 70% will be repaid upon completion of the transfers and the transfer of the Shipyard to ONEX.

“It is particularly emphasized that, for the second time, ONEX (initially in Neorio) will pay accruals of previous ownership before the formal completion of the transfer process,” said company circles.

“We are very happy with what has been agreed. If the Shipyards went bankrupt we would lose more than 40 million of our hard earned money.

The bilateral agreement is the result of negotiations, and ensures an increase in jobs from the second year of operation of the Shipyards. This will give again not only to Eleusis, but to the whole of western Attica and of course to the same state. A whole economic cycle with solid foundations starts again from here, from Elefsina” he said in Capital.gr the president of the workers, Nikos Papanikolaou.

According to the company, the restart of the Elefsina Shipyards includes:

-Direct investment of 100 million dollars
-Securing 600 jobs
-Compensations of 13.4 million euros – repayment of 100% of the remaining debts to the employees
-Creation of 1,400 new jobs within 3 years
-Additional revenue of 1.1 billion euros for the Greek State (direct and indirect taxes, insurance contributions) over the next 25 years
-Strengthening the Greek Economy with more than 1.6 billion euros that will be directed to domestic suppliers and the Greek Industry

The cost of not approving the Sanitation Agreement of the Elefsina Shipyards is considered particularly damaging, in combination with their particularly negative financial position, and the multitude of problems they face are expected to pose a direct risk to their continued operation, with particularly negative effects on the national economy (due to the size of the industry), national security (due to their involvement with the Navy’s defense programs), but also the local community (as it has determined the economic model of the region, and is directly linked to the economic survival of the wider regions ).

Debts

Based on the balance sheet of NBEE dated 30.09.2021, its total debts of all kinds amount to 432,686,301.67 euros (419,288,880.32 euros general debts + 13,397,491.35 personnel compensations), of which 211,899. 550.24 euros will be transferred to the new companies. The amount of the Transferred Liabilities includes an amount of 142,337,077 euros to the Navy.

Total debts amounting to 220,786,751.43 euros remain with the company, as non-transferable liabilities and are satisfied by the liquidation product of non-transferable assets.

The total value of the Transferable Assets of the Shipyards in the event of bankruptcy is only 28,278,157.94 euros, with minimal recovery for creditors.

The rest of the Non-Transferable Assets and Non-Transferable Liabilities of NBEE will remain with NBEE and the Non-Transferable Assets will be liquidated by the court appointed Special Trustee. The product resulting from the liquidation of the Non-Transferable Assets will further satisfy the Company’s creditors for their claims included in the Non-Transferable Liabilities, while in case of non-satisfaction, the said claims will be completely written off.

Navy

As it has become known, the total liabilities of NBEE dated 30.09.2021 to the Navy or 142,337,077 euros will also be transferred to the new company. This amount will be repaid after the Completion Date of the Transfers over a period of 30 years with withholding of flows.

The Navy undertakes that immediately after the ratification of the Restructuring Agreement and until the Completion Date of the Transaction it will return to the bank all the Letters of Guarantee it holds in its hands, exempting NBEE from any responsibility for them as they relate to projects which, on the one hand, are not transferred to the new companies and on the other hand, the claims it maintains due to them are regulated in the reorganization agreement.