Her Anastasia Cotton
The debate on the bill tabled on Monday evening by the Ministry of Development & Investments entitled “Cleaning up of the Elefsina Shipyards and other provisions of a developmental nature”, which seeks to grant authorization to Minister Adonis Georgiadis for the unified participation of State as a creditor in the attempted consolidation of the Elefsina Shipyards.
With the completion of the passing of the Draft Law by the Hellenic Parliament, where it is estimated that it is important to pass with a large majority, the judicial battle of the consolidation will follow.
Beyond the direct jobs and the fiscal positive sign – totaling more than 1.1 billion euros over the next 25 years -, the restart of the Elefsina Shipyards is estimated to further strengthen the Greek economy, channeling to domestic suppliers and the wider Greek industry capital of 1.6 – 1.8 billion euros.
With reference to the defense arm, such as e.g. that of corvettes there is a huge possibility of flexible and long-term financing programs through Italian financial state organizations that ensure solutions.
The Elefsina Shipyards Consolidation agreement in order to establish a sustainable restart model provides, among other things:
▪ Direct investment of 100 million dollars.
▪ Ensuring 600 jobs.
▪ Compensations amounting to 13.4 million euros – repayment of 100% of the remaining debts to the employees.
▪ Creation of 1,400 new jobs within 3 years.
▪ Additional revenues of 1.1 billion euros for the Greek State (direct and indirect taxes, insurance contributions) over the next 25 years.
▪ Strengthening of the Greek Economy with more than 1.6 billion euros that will be directed to domestic suppliers and Greek Industry.
The discussions and negotiations of all the previous months brought an important agreement between the company and the employees, for the repayment of accruals-compensations etc.
This fact, combined with the recruitments of the following years, will give life to Elefsina again, the workers themselves estimate, who are in agreement with the consolidation plan as there was no contractual obligation to ONEX – all of the Shipyards’ debts to the workers will be repaid.
The bilateral agreement includes the repayment of 30% of debts, approximately €27 million, once the judicial part of the reorganization is completed, as well as severance payments of approximately €13.4 million, 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.
“The workers are particularly happy that together with the new owner company they managed to save the shipyard and achieve the preservation and increase of jobs, the payment of accrued wages & compensations with a safety valve consultation & bilateral agreement, securing labor rights with priority to work and not the condemnation to unemployment that they were actually living in for decades”, company circles report to Capital.gr.
In particular, the draft law states that “the apparent obligations of NBEE towards the employees with a calculation date of 30.9.2021 concerning claims from wages (earned wages and overtime wages), gifts, allowances and other compensations of all phases deriving from their employment contract with the NBEE in the total amount of €27,041,925.10, as well as their severance pay in the amount of €13,397,421.35 are fully taken over by ONEX ELEFSIS NAVAL AND MARITIME STOCK COMPANY”.
Total debts
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 NBEE’s Transferable Assets in the event of bankruptcy is only 28,278,157.94 euros, with minimal recovery for creditors (see liabilities to the State).
Source: Capital
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