Dionic announced that the energy crisis and the effects of the spread of covid 19 in our country had as a consequence in the third quarter of 2021 the negative impact on the financial situation in which the Group had fallen in recent years, as well as the stagnation in the negotiations and the inability to communicate with the creditor banks in order to re-arrange the overdue loan liabilities at levels sustainable for the Group.
According to the relevant announcement, the key points of this negative financial development were:
– The inability of the Group to maintain in the year 2020 important collaborations in the field of human resources services and in particular the exclusion of Group Companies in its participation in Public Tenders due to lack of participation guarantees and good execution.
– The cessation of commercial collaborations in the technology sector as a subdivision of well-known brands.
– The cessation of imports of electrical items due to lack of funding.
– The cessation of exports of technology products to the European Market.
The following table presents the most important financial data at Group and Company level for the period 1.1.2021-30.09.2021 in relation to the previous period:
There were no significant changes in the borrowing position of the Group and the Company during the third quarter. The total loan liabilities of the Group and the Company as at 30.9.2021 amount to € 44.70 million (30.6.2021 € 44.64 million) and € 36.29 million (30.6.2021 € 36.27 million). ) respectively. The equity of the Group and the Company on 30.9.2021 are negative by € 61.7 million and € 47.9 million respectively.
The working capital of the Group and the Company on 30.9.2021 is negative by € 64.87 million and € 55.5 million respectively.
There were no other significant changes in the third quarter of 2021.
The basic action plan designed by the Group Management and implemented is summarized as follows:
1. In order to reduce further operating losses, it was decided to reduce the staff of the human resources services sector after the exclusion of the Group companies in its participation in Public Tenders due to lack of participation guarantees and good execution.
2. Contacts with key creditors of the Group and mainly with the representatives of the cooperating financial institutions in order to reach an agreement on refinancing or restructuring of the loan liabilities banks. In the context of this effort, the Group continues the process of divesting to loss-making activities and selling its assets, including its occupied business units.
3. The successful restructuring of the Group’s debts and the acquisition of the necessary working capital would mean the beginning of the effort to restart the Group’s activities with a focus on the further development of the online activity of the Group companies in the field of trade with the new data that have been formed. and the resumption of exports to the European technology market.
“The company is still in negotiations with ALPHA BANK and the NATIONAL BANK for the regulation of its lending without any substantial development until today”, Dionic states in the announcement and adds:
“It must be emphasized that if there is no possibility of financing, as Working Capital, it is not possible to reverse the course of economic figures.
“Finally, for the Group, regardless of the future development of the pandemic, given the financial situation that has developed to date, the need to reach an agreement on refinancing or restructuring of bank loan obligations is imperative.”
Source From: Capital
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